77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1284

                         House Bill 2339

Sponsored by Representative GREENLICK; Representative HARKER
  (Presession filed.)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Establishes Portland State University as public corporation
under control of Portland Metropolitan Universities Board of
Directors.
  Removes Portland State University from Oregon University
System.
  Declares legislative intent regarding budget and funding of
Portland State University.
  Changes name of Oregon Health and Science University Board of
Directors to Portland Metropolitan Universities Board of
Directors.
  Becomes operative July 1, 2015.

                        A BILL FOR AN ACT
Relating to the integration of Portland State University and
  Oregon Health and Science University; creating new provisions;
  and amending ORS 15.400, 97.170, 131.594, 174.108, 181.871,
  183.635, 184.475, 184.477, 190.410, 192.501, 192.502, 192.690,
  238.005, 238A.005, 243.107, 243.820, 243.910, 244.050, 276.227,
  276.229, 279A.025, 283.143, 284.633, 284.701, 285B.168,
  286A.001, 287A.001, 291.229, 307.095, 307.110, 326.543,
  329.840, 332.155, 336.057, 337.500, 337.511, 338.005, 338.115,
  339.885, 340.005, 341.440, 342.144, 343.961, 344.557, 348.180,
  348.205, 348.210, 348.270, 348.394, 348.597, 348.900, 351.015,
  351.203, 351.293, 351.296, 351.509, 351.511, 351.649, 351.656,
  351.663, 351.666, 351.695, 351.697, 351.718, 351.735, 351.810,
  351.820, 351.840, 351.870, 352.002, 352.063, 352.066, 352.068,
  352.071, 352.074, 352.375, 353.010, 353.020, 353.030, 353.040,
  353.050, 353.060, 353.070, 353.080, 353.100, 353.110, 353.117,
  353.120, 353.130, 353.140, 353.160, 353.180, 353.190, 353.200,
  353.202, 353.205, 353.210, 353.250, 353.260, 353.270, 353.280,
  353.290, 353.300, 353.340, 353.350, 353.360, 353.370, 353.380,
  353.390, 353.400, 353.410, 353.440, 353.445, 353.600, 408.095,
  419B.005, 431.690, 433.090, 461.535, 461.543, 471.580, 541.932,
  660.315, 679.020, 696.182 and 759.445 and sections 13 and 17,
  chapter 761, Oregon Laws 2007, section 22, chapter 904, Oregon
  Laws 2009, section 14, chapter 36, Oregon Laws 2012, and
  section 1, chapter 101, Oregon Laws 2012.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 353.020 is amended to read:

  353.020. Oregon Health and Science University   { - is - }
 { +  and Portland State University are + } established as a
public
  { - corporation - }  { +  corporations + } and shall exercise
and carry out all powers, rights and privileges that are
expressly conferred upon
  { - it - }  { +  each institution + }, are implied by law or
are incident to such powers.   { - The - }  { +  Each + }
university   { - shall be - }  { +  is + } a governmental entity
performing governmental functions and exercising governmental
powers.   { - The - }  { +  Each + } university   { - shall
be - }  { +  is + } an independent public corporation with
statewide purposes and missions and without territorial
boundaries.   { - The - }  { +  Each + } university   { - shall
be - }   { + is + } a governmental entity but   { - shall not - }
 { + may not + } be considered a unit of local or municipal
government or a state agency for purposes of state statutes or
constitutional provisions.
  SECTION 2.  { + Section 3 of this 2013 Act is added to and made
a part of ORS chapter 353. + }
  SECTION 3.  { + (1) The Portland Metropolitan Universities
Board of Directors established under ORS 353.040 shall develop a
plan for the final reorganization of Oregon Health and Science
University and Portland State University.
  (2) No later than October 1, 2017, the board shall submit the
final reorganization plan, including recommendations for
legislation, in a report to the committees or interim committees
of the Legislative Assembly related to education, as appropriate.
The report shall be made in the manner provided by ORS 192.245.
  (3) The reorganization plan adopted by the Portland
Metropolitan Universities Board of Directors shall take effect no
later than July 1, 2025. + }
  SECTION 4. ORS 353.010 is amended to read:
  353.010. As used in this chapter:
  (1) 'Board' means the   { - Oregon Health and Science
University - }  { +  Portland Metropolitan Universities + } Board
of Directors established under ORS 353.040.
    { - (2) 'Public corporation' means an entity that is created
by the state to carry out public missions and services. In order
to carry out these public missions and services, a public
corporation participates in activities or provides services that
are also provided by private enterprise. A public corporation is
granted increased operating flexibility in order to best ensure
its success, while retaining principles of public accountability
and fundamental public policy. The board of directors of a public
corporation is appointed by the Governor and confirmed by the
Senate but is otherwise delegated the authority to set policy and
manage the operations of the public corporation. - }
    { - (3) 'University' or 'Oregon Health and Science
University' means the Oregon Health and Science University public
corporation created under ORS 353.020. - }
   { +  (2) 'Public corporation' means an entity that is created
by the State of Oregon to carry out public missions and services
and that is characterized by:
  (a) A board of directors appointed by the Governor and
confirmed by the Senate that sets policy and manages the
operations of the corporation;
  (b) Exemption from the requirements of specific state statutes
pertaining to governmental operation, so as to allow increased
operating flexibility to ensure success, while retaining
principles of public accountability and implementing a
fundamental public policy; and
  (c) A public mission, but with the provision of activities and
services that are also provided by private enterprise. + }
  SECTION 5. ORS 353.030 is amended to read:

  353.030. (1) It shall be the public policy of   { - the - }
Oregon Health and Science University in carrying out its missions
as a public corporation:
  (a) To serve the people of the State of Oregon by providing
education in health, science, engineering and their management
for students of   { - the - }   { + this + } state and region.
  (b) To provide:
  (A) An environment that stimulates the spirit of inquiry,
initiative and cooperation between and among students, faculty
and staff;
  (B) Research in health care, engineering, biomedical sciences
and general sciences; and
  (C) The delivery of health care to contribute to the
development and dissemination of new knowledge.
  (2) The university will strive for excellence in education,
research, clinical practice, scholarship and community service
while maintaining compassion, personal and institutional
integrity and leadership in carrying out its missions.
  (3) The university is designated to carry out the following
public purposes and missions on behalf of the State of Oregon:
  (a) Provide high quality educational programs appropriate for a
health and science university;
  (b) Conduct research in health care, engineering, biomedical
sciences and general sciences;
  (c) Engage in the provision of inpatient and outpatient
clinical care and health care delivery systems throughout the
state;
  (d) Provide outreach programs in education, research and health
care;
  (e) Serve as a local, regional and statewide resource for
health care providers; and
  (f) Continue a commitment to provide health care to the
underserved patient population of Oregon.
  (4) The university shall carry out the public purposes and
missions of this section in the manner that, in the determination
of the   { - Oregon Health and Science University - }  { +
Portland Metropolitan Universities + } Board of Directors, best
promotes the public welfare of the people of the State of Oregon.
  SECTION 6. { +  It shall be the public policy of Portland State
University, in carrying out its missions as a public corporation,
to promote and enhance higher education as provided in ORS
351.006 and 351.008. The university shall carry out the public
purposes and missions of this section in the manner that, in the
determination of the Portland Metropolitan Universities Board of
Directors, best promotes the public welfare of the people of the
State of Oregon. + }
  SECTION 7. ORS 353.040 is amended to read:
  353.040. (1) There is established   { - an Oregon Health and
Science University - }  { +  the Portland Metropolitan
Universities + } Board of Directors consisting of   { - 10 - }
 { + 15 + } members. The directors, except for the
 { - president of the university - }  { +  presidents of Oregon
Health and Science University and Portland State University, the
member from the Senate and the member from the House of
Representatives + }, shall be appointed by the Governor and shall
be confirmed by the Senate in the manner prescribed in ORS
171.562 and 171.565.
  (2) { + (a) + } Except for the   { - president of the
university - }  { +  presidents of the universities, the member
from the Senate and the member from the House of
Representatives + }, the term of office of each nonstudent member
is four years. The term of office of the student member is two
years.  { + The term of office of a director who is a member of
the Legislative Assembly expires at the end of the term for which
the member is elected. + }

   { +  (b) + } Before the expiration of the term of a
member { +  who is appointed by the Governor + }, the Governor
shall appoint a successor whose term begins on October 1 next
following. A member is eligible for reappointment for one
additional term. If there is a vacancy for any cause, the
Governor shall make an appointment to become effective
immediately for the unexpired term. The board shall nominate a
slate of candidates whenever a vacancy occurs or is announced and
shall forward the recommended candidates to the Governor for
consideration.
   { +  (c) + } To assist the Governor in appointing the student
member, the duly organized and recognized   { - entity - }  { +
entities + } of student government shall  { + each + } submit a
list of nominees to the Governor for consideration.
  (3) The membership of the board shall be as follows:
  (a) One representative who is a nonstudent member of the State
Board of Higher Education.
  (b)   { - Seven - }  { +  Nine + } representatives who, in the
discretion of the Governor, have experience in areas  { + that
are + } related to the
  { - university - }  missions  { + of each university + } or
that are important to the success of   { - Oregon Health and
Science University - }  { +  each university + }, including but
not limited to higher education, health care, scientific
research,  { + social sciences, the arts, + } engineering and
technology { + , + } and economic and business development.
  (c) One representative who is a student enrolled at
 { - the - }  { +  Oregon Health and Science University or
Portland State + } University.
  (d) The president of   { - the - }  { +  Oregon Health and
Science + } University, who shall be an ex officio voting member.
   { +  (e) The president of Portland State University, who shall
be an ex officio voting member.
  (f) A member of the Senate, appointed by the President of the
Senate, who shall be a nonvoting member.
  (g) A member of the House of Representatives, appointed by the
Speaker of the House of Representatives, who shall be a nonvoting
member. + }
  (4) Directors must be citizens of the United States. Except for
the   { - president of the university, no - }  { +  presidents of
the universities a + } voting member may  { + not + } be an
employee of   { - the - }  { +  either + } university.
  (5) The   { - board - }  { +  Portland Metropolitan
Universities Board of Directors + } shall select one of its
 { + voting + } members as chairperson and another as vice
chairperson for such terms and with such duties and powers as the
board considers necessary for performance of the functions of
those offices. The board shall adopt bylaws concerning how a
quorum shall be constituted and when a quorum shall be necessary.
  (6) The board shall meet at least once every three months at
Oregon Health and Science University { +  or Portland State
University + }.  The board shall meet at such other times and
places specified by the chairperson or by a majority of the
members of the board.
  (7)  { + Except for the president of each university, the
member from the Senate and the member from the House of
Representatives, + } the Governor may remove any member of the
board at any time for cause, after notice and public hearing, but
not more than three members shall be removed within a period of
four years, unless it is for corrupt conduct in office.
  SECTION 8.  { + Notwithstanding the term of office specified in
ORS 353.040, of the two additional voting members first appointed
to the Portland Metropolitan Universities Board of Directors
pursuant to the amendments to ORS 353.040 (3)(b) by section 7 of
this 2013 Act:
  (1) One shall serve for a term ending June 30, 2017.
  (2) One shall serve for a term ending June 30, 2019. + }
  SECTION 9.  { + (1) The Portland Metropolitan Universities
Board of Directors established under ORS 353.040 shall study the
feasibility of imposing a local tax that would be dedicated to
funding all or a portion of the powers conferred upon the board
by ORS 353.050.
  (2) The board shall report the findings of its study and its
recommendations based on the study to the appropriate interim
committee of the Legislative Assembly related to revenue no later
than July 1, 2016. + }
  SECTION 10. ORS 353.050 is amended to read:
  353.050. Except as otherwise provided in this chapter, the
  { - Oregon Health and Science University - }  { +  Portland
Metropolitan Universities + } Board of Directors, or  { + Oregon
Health and Science University and Portland State + } University
officials acting under the authority of the board, shall exercise
all the powers of   { - the - } Oregon Health and Science
University  { + and Portland State University + } and shall
govern the   { - university - }  { +  universities + }.   { - In
carrying out its powers, rights and privileges, the university
shall be a governmental entity performing governmental functions
and exercising governmental powers. The university or - }  The
board may either within or outside the state:
  (1) Determine or approve policies for the organization,
administration and development of the   { - university - }  { +
universities + }.
  (2) Appoint and employ any instructional, administrative,
professional, trade, occupational and other personnel as are
necessary or appropriate to carry out the missions of the
  { - university - }  { +  universities + }, and prescribe
 { - their - }  compensation and terms of office or
employment { +  for the personnel + }.
  (3) Make any and all contracts and agreements, enter into any
partnership, joint venture or other business arrangement
 { - , - }  { +  and + } create and participate fully in the
operation of any business structure, including but not limited to
the development of business structures for health care delivery
systems and networks with any public or private government,
nonprofit or for-profit person or entity that { + , + } in the
judgment of the   { - university - }  { +  universities + } or
the board is necessary or appropriate to carry out the
 { - university's - }  { +  universities' + } missions and goals.
  (4) Acquire, purchase, receive, hold, control, convey, sell,
manage, operate, lease, license, lend, invest, improve, develop,
use, dispose of and hold title to real and personal property of
any nature, including intellectual property, in   { - its own - }
 { +  the board's + } name { +  or in the universities'
names + }.
  (5) Sue in   { - its own name - }  { +  the board's name or in
the universities' names + } and be sued, plead and be impleaded
in all actions, suits or proceedings in any forum brought by or
against
  { - it - }  { +  the board or the universities + } by any and
all private or state, local, federal or other public entities,
agencies or persons.
  (6) Encourage gifts and donations for the benefit of the
  { - university - }  { +  universities + }, and subject to the
terms of the gift, retain, invest and use such gifts as deemed
appropriate by the
  { - university - }  { +  universities + } or the board.
  (7) Acquire, receive, hold, keep, pledge, control, convey,
manage, use, lend, expend and invest all funds, appropriations,
gifts, bequests, stock and revenue from any source to the
  { - university - }  { +  universities + }.
  (8) Borrow money for the needs of the   { - university - }
 { +  universities + }, in such amounts and for such time and
upon such terms as may be determined by the   { - university - }
 { +  universities + } or the board.
  (9) Erect, construct, improve, develop, repair, maintain,
equip, furnish, lease, lend, convey, sell, manage, operate, use,
dispose of and hold title to buildings, structures and lands for
the   { - university - }  { +  universities + }.
  (10) Purchase   { - any and all - }  insurance, operate a
self-insurance program or otherwise arrange for the equivalent of
insurance coverage of any nature and the indemnity and defense of
  { - its - }  { +  the + } officers, agents and employees or
other persons designated by   { - the - }  { +  each + }
university to carry out or further the missions of   { - the - }
 { + that + } university.
  (11) Create, develop, supervise, control and adopt academic
programs, including standards, qualifications, policies or
practices relating to admissions, curriculum, academic
advancement, grading policy, student conduct, credits and
scholarships and the granting of academic degrees, certificates
and other forms of recognition.
  (12) Authorize, create, eliminate, establish, operate,
reorganize, reduce or expand any program, school, institute,
health care facility or other unit of operation.
  (13) Establish, charge, collect and use charges for enrollment
into   { - the - }  { +  each + } university, including charges
such as tuition for education and general services, incidental
fees and such other charges found by the   { - university - }
 { + board + } to be necessary to carry out   { - its - }
educational programs. Fees realized in excess of amounts
allocated and exceeding required reserves shall be considered
surplus incidental fees and shall be allocated for programs under
the control of the board and found to be advantageous to the
cultural or physical development of students of   { - the - }
 { +  each + } university upon the recommendation of the
recognized student government of the university.
  (14) Establish, charge, collect and use charges and fees for
university services and the use of university facilities.
  (15) Impose charges, fines, fees and such other regulations
considered convenient or necessary to control and regulate
traffic and parking of vehicles to the same extent allowed the
State Board of Higher Education. This authority includes the
authority to enforce the regulations of   { - the - }  { +
each + } university in a court to the extent allowed the State
Board of Higher Education in enforcing the state board's
regulations as provided in ORS 352.360 (7).
  (16) Commission special campus security officers to be known as
university police. University police commissioned under this
subsection have all the powers and authority given by statute to
peace officers and police officers of this state. University
police shall complete training necessary for certification as
police officers at an academy operated or authorized by the
Department of Public Safety Standards and Training at the expense
of the   { - Oregon Health and Science University - }  { +
Portland Metropolitan Universities + } Board of Directors.
University police are not authorized to carry firearms as police
officers and are not police officers for purposes of ORS 238.005,
243.005 or 243.736.   { - The - }  { +  Each + } university is a
criminal justice agency for purposes of ORS 181.715 and 181.720
and a law enforcement unit within the meaning of ORS 181.610
(12).
  (17) Enforce and recover for payment to   { - the - }  { +
each + } university any fines that are authorized by this
chapter.
  (18) Adopt, amend or repeal bylaws, administrative rules,
regulations and orders applicable to the matters that are the
subject of this chapter.

  (19) Contract with any state agency for the performance of such
duties, functions and powers as is appropriate. A state agency
 { - shall - }  { +  may + } not charge the   { - university - }
 { +  universities + } for such services an amount that is
greater than the actual cost of the services.
  (20) Purchase, receive, subscribe for or otherwise acquire,
own, hold, vote, use, sell, mortgage, lend, pledge, invest in or
otherwise dispose of and deal in or with the shares, stock or
other equity or interests in or obligations of any other entity.
Separate funds may be established for such investments. The State
of Oregon shall have no proprietary or other interest in such
investments or such funds.
  (21) Make available, by lease or otherwise, or control access
to any health care facilities or services or other of
 { - its - }   { + the universities' + } properties and assets to
such persons, firms, partnerships, associations or corporations
and on such terms as considered appropriate, charge and collect
rent or other fees or charges therefor and terminate or deny any
such access or any such lease or other agreement for such reasons
as considered appropriate and as may be consistent with its
obligations under any such lease or other agreement.
  (22) Contract for the operation of any department, section,
equipment or holdings of   { - the - }  { +  each + } university
and enter into any agreements with any person, firm or
corporation for the management by said person, firm or
corporation on behalf of the university of any of its properties
or for the more efficient or economical performance of clerical,
accounting, administrative   { - and - }  { +  or + } other
functions   { - relating to its health care facilities - } .
  (23) Select and appoint faculty as medical and dental staff
members and others licensed to practice the healing arts,
delineate and define the privileges granted each such individual,
adopt and direct a plan for faculty clinical income and set the
terms and conditions of that plan (including such modifications
to any such existing plan as considered necessary or appropriate
upon expiration of the term of such plan), and determine the
extent to which and the terms upon which each such individual may
provide teaching, research, consulting or other services at
 { - the - }  { +  Oregon Health and Science + } University or
any other health care facility.
  (24) Enter into affiliation, cooperation, territorial,
management or other similar agreements with other public or
private universities or health care providers for the sharing,
division, allocation or furnishing of services on an exclusive or
a nonexclusive basis, referral of patients, management of
facilities, formation of health care delivery systems and other
similar activities.
  (25) Perform any other acts that { + , + } in the judgment of
the board or  { + each + } university { + , + } are requisite,
necessary or appropriate in accomplishing the purposes described
in or carrying out the powers granted by this chapter.
  (26) Exercise   { - these powers - }  { +  the powers granted
by this chapter + }, notwithstanding that as a consequence of the
exercise of such powers,   { - the - }  { +  each + } university
engages in activities that might otherwise be deemed
anticompetitive within the contemplation of state or federal
antitrust laws.
  SECTION 11. ORS 353.060 is amended to read:
  353.060. The   { - Oregon Health and Science University - }
 { +  Portland Metropolitan Universities + } Board of Directors
shall appoint a president of   { - the - }  { +  Oregon Health
and Science + } University. The president is the president of the
faculty and is the executive and governing officer of
 { - the - }  { +  Oregon Health and Science + } University.
Subject to the supervision of the board, the president has

authority to direct the affairs of   { - the - }  { +  Oregon
Health and Science + } University.
   { +  (2) The Portland Metropolitan Universities Board of
Directors shall appoint a president of Portland State University.
The president is the president of the faculty and is the
executive and governing officer of Portland State University.
Subject to the supervision of the board, the president has
authority to direct the affairs of Portland State University. + }
  SECTION 12.  { + The president of Portland State University on
the operative date specified in section 160 of this 2013 Act
shall remain as president under the supervision of the Portland
Metropolitan Universities Board of Directors. At any time after
the operative date specified in section 160 of this 2013 Act the
Portland Metropolitan Universities Board of Directors may choose
to replace the president with a new appointee. + }
  SECTION 13. ORS 353.070 is amended to read:
  353.070. (1) As used in this section:
  (a) 'Direct labor' includes all work required for preparation,
processing and packing, but not supervision, administration,
inspection or shipping.
  (b) 'Individual with a disability' means an individual who,
because of the nature of the individual's disability, is not able
to participate fully in competitive employment, and for whom
specialized employment opportunities must be provided.
  (c) 'Qualified nonprofit agency for individuals with
disabilities' means a nonprofit activity center or rehabilitation
facility:
  (A) Organized under the laws of the United States or of this
state and operated in the interest of individuals with
disabilities, and the net income of which does not inure in whole
or in part to the benefit of any shareholder or other individual;
  (B) That complies with any applicable occupational health and
safety standards required by the laws of the United States or of
this state; and
  (C) That in the manufacture of products and in the provision of
services during the fiscal year employs individuals with
disabilities for not less than 75 percent of the work hours of
direct labor required for the manufacture or provision of the
products or services.
  (2) The   { - Oregon Health and Science University - }  { +
Portland Metropolitan Universities + } Board of Directors shall
further the policy of this state to encourage and assist
individuals with disabilities to achieve maximum personal
independence through useful and productive gainful employment by
ensuring an expanded and constant market for sheltered workshop
and activity center products and services, thereby enhancing the
dignity and capacity of individuals with disabilities for
self-support and minimizing their dependence on welfare and need
for costly institutionalization.
    { - (3) It shall be the duty of Oregon Health and Science
University to: - }
   { +  (3) The board shall: + }
  (a) Determine the price of all products manufactured and
services offered for sale to   { - the - }  { +  Oregon Health
and Science University and Portland State + } University by any
qualified nonprofit agency for individuals with disabilities. The
price shall recover for the workshops the cost of raw materials,
labor, overhead, delivery costs and a margin held in reserve for
inventory and equipment replacement  { - ; - }  { + . + }
  (b) Revise such prices from time to time in accordance with
changing cost factors  { - ; - }  { + . + }
  (c) Make such rules regarding specifications, time of delivery
and other relevant matters of procedure as shall be necessary
 { - ; and - }  { + . + }
  (d) Utilize prices and specifications, in its discretion,
established by the Oregon Department of Administrative Services.
  (4) The   { - university - }  { +  board + } shall establish
and publish a list of sources or potential sources of products
produced by any qualified nonprofit agency for individuals with
disabilities and the services provided by any such agency that
the   { - university - }  { +  board + } determines are suitable
for its procurement. The
  { - university - }  { +  board + }, in its discretion, may
utilize any list established and published by the Oregon
Department of Administrative Services.
  (5) If   { - the - }  { +  Oregon Health and Science University
or Portland State + } University intends to procure any product
or service on the procurement list, the university shall procure
such product or service at the price established by the
 { - university - }  { +  board + } from a qualified nonprofit
agency for individuals with disabilities, provided the product or
service is of the appropriate specifications and is available at
the location and within the period required by the university.
  (6) It is the intent of the Legislative Assembly that there be
close cooperation between the board, the   { - university - }
 { +  universities + } and qualified nonprofit agencies for
individuals with disabilities.   { - The  - }  { +  Each + }
university, on behalf of the board, is authorized to enter into
such contractual agreements, cooperative working relationships or
other arrangements as may be necessary for effective coordination
and efficient realization of the objectives of this section.
  SECTION 14. ORS 353.080 is amended to read:
  353.080. { +  (1) + } Oregon Health and Science University
shall file with the Legislative Assembly, the Higher Education
Coordinating Commission and the Governor, not later than April 15
of each year, a report of the university's activities and
operations for the preceding year.
   { +  (2) Portland State University shall file with the
Legislative Assembly, the Higher Education Coordinating
Commission and the Governor, not later than April 15 of each
year, a report of the university's activities and operations for
the preceding year. + }
  SECTION 15. ORS 353.100, as amended by section 62, chapter 107,
Oregon Laws 2012, is amended to read:
  353.100. (1) The provisions of ORS chapters 35, 190, 192, 244
and 295 and ORS 30.260 to 30.460, 200.005 to 200.025, 200.045 to
200.090, 236.605 to 236.640, 243.650 to 243.782, 297.040, 307.090
and 307.112 apply to Oregon Health and Science University
 { + and Portland State University + } under the same terms as
 { - they - }   { + the provisions + } apply to public bodies
other than the state.
  (2) Except as otherwise provided by law, the provisions of ORS
chapters 182, 183, 240, 270, 273, 276, 279A, 279B, 279C, 283,
 { +  286A, + } 291, 292, 293, 294 and 297 and ORS 35.550 to
35.575, 180.060, 180.210 to 180.235, 183.710 to 183.725, 183.745,
183.750, 184.305 to 184.345, 190.430, 190.480, 190.490, 192.105,
200.035, 243.105 to 243.585, 243.696, 278.011 to 278.120, 278.315
to 278.415, 279.835 to 279.855, 282.010 to 282.150, 283.085 to
283.092,  { + 348.594 to 348.615, + } 357.805 to 357.895 and
656.017 (2) do not apply to   { - the university - }  { +  Oregon
Health and Science University or Portland State University + } or
 { + to + } any not-for-profit organization or other entity if
the equity of the { +  organization or + } entity is owned
exclusively by   { - the - }  { +  either + } university and if
the organization or entity is created by   { - the - }  { +
either + } university to advance any of   { - the - }  { +
that + } university's statutory missions.
  (3) { + (a) + }   { - The - }   { + Oregon Health and Science
 + }University, as a distinct governmental entity, or any
organization or entity described in subsection (2) of this
section { + , + } is not subject to any provision of law enacted
after January 1, 1995, with respect to any governmental entity,
unless the provision specifically provides that it applies to the
university or to the organization or entity.
   { +  (b) Portland State University, as a distinct governmental
entity, or any organization or entity described in subsection (2)
of this section, is not subject to any provision of law enacted
after July 15, 2015, with respect to any governmental entity,
unless the provision specifically provides that it applies to the
university or to the organization or entity. + }
  SECTION 16.  { + Section 17 of this 2013 Act is added to and
made a part of ORS chapter 353. + }
  SECTION 17.  { + (1) Legal title to real property and
facilities acquired by the State of Oregon prior to July 1, 2015,
and utilized by Portland State University shall remain with the
State of Oregon. However, the university shall have the exclusive
care, custody and control of such real property and facilities
pursuant to an exclusive leasehold interest in the real property
and facilities for a term of 99 years. The term of the leasehold
shall begin on July 1, 2015, and shall renew automatically and
perpetually for consecutive 99-year terms.
  (2) Notwithstanding any other provisions of state law
concerning the authority of state agencies to lease real property
and facilities, the Oregon Department of Administrative Services
acting on behalf of the State of Oregon shall execute a ground
lease for all real property and facilities utilized by the
university consistent with the provisions of this section.
  (3) The ground lease is not subject to any termination unless:
  (a) The State of Oregon causes all outstanding obligations of
the university to be defeased under the terms of any applicable
master indenture or financing agreement; and
  (b) There are no other conditions placed on the university.
  (4) Upon execution of the ground lease, the university shall
pay the State of Oregon the sum of $99 in consideration for the
ground lease.
  (5) The university shall manage and maintain all real property
and facilities utilized by the university. Real property and
facilities of the State of Oregon leased to the university
pursuant to this section may not be sold by the university but
may be encumbered by the university. Such real property and
facilities shall be encumbered by the State of Oregon only in
accordance with state law and in a manner that would not impair
the financial condition of the university or the rights of the
holders of any obligations of the university issued or incurred
under any master indenture or other financing agreement. + }
  SECTION 18. ORS 353.110 is amended to read:
  353.110.   { - The - }  Oregon Health and Science University
 { + or Portland State University + } may acquire, by
condemnation or otherwise, private property that is necessary or
convenient in carrying out any power granted to   { - the - }
 { + that + } university. The right to acquire property by
condemnation shall be exercised as provided by ORS chapter 35.
  SECTION 19. ORS 353.117 is amended to read:
  353.117. (1) Pursuant to ORS 353.050, Oregon Health and Science
University  { + or Portland State University + } may create and
maintain an entity that is exempt from federal income tax under
section 501(c)(3) of the Internal Revenue Code, as amended, for
the purpose of conducting clinical care and practice
 { - and - }   { + or + } advancing other university missions by
the faculty.
  (2) Any entity created by   { - the - }   { + a + } university
under subsection (1) of this section shall be considered:
  (a) A public employer for purposes of ORS 236.605 to 236.640
and ORS  { + chapter 238 + }   { - chapters 238 and 238A - } ;
   { +  (b) A participating public employer for the purposes of
ORS chapter 238A; + }
    { - (b) - }  { +  (c) + } A unit of local government for
purposes of ORS 190.003 to 190.130;
    { - (c) - }  { +  (d) + } A public body for purposes of ORS
30.260 to 30.300 and 307.112;
    { - (d) - }  { +  (e) + } A public agency for purposes of ORS
200.090; and
    { - (e) - }  { +  (f) + } A public corporation for purposes
of ORS 307.090.
  SECTION 20. ORS 353.120 is amended to read:
  353.120. The   { - Oregon Health and Science University - }
 { +  Portland Metropolitan Universities Board of Directors + },
in consultation with the Alcohol and Drug Policy Commission,
shall adopt a comprehensive alcohol and drug abuse policy and
implementation plan.
  SECTION 21. ORS 353.130 is amended to read:
  353.130. The   { - Oregon Health and Science University
subscribes to the policy set forth under ORS 279A.015 regarding
public contracting, and - }  { +  Portland Metropolitan
Universities Board of Directors + } shall develop contract
policies that support openness, impartiality and competition in
the awarding of contracts in accordance with   { - that
provision. The university subscribes to the intent of the social
policies of ORS 279.835 to 279.855 and ORS chapters 279A, 279B
and 279C and - }  { +  the provisions of ORS 279A.015.  The
board + } shall develop contract policies that are appropriate to
  { - the - }  { +  Oregon Health and Science University and
Portland State + } University and  { + that + } are designed to
encourage affirmative action, recycling,  { + the + } inclusion
of art in public buildings, the purchase of services and goods
from individuals with disabilities, the protection of workers
through the payment of prevailing wages as determined by the
Bureau of Labor and Industries, the provision of workers'
compensation insurance to workers on contracts and the
participation of emerging small businesses and businesses owned
by women and minorities.
  SECTION 22. ORS 353.140 is amended to read:
  353.140. (1) By September 1 of each even-numbered year the
  { - Oregon Health and Science University - }  { +  Portland
Metropolitan Universities Board of Directors + } shall submit to
the Oregon Department of Administrative Services a funding
request for each biennium. The Oregon Department of
Administrative Services shall include and submit   { - a
university - }  { +  the board's + } funding request to the
Legislative Assembly as part of the Governor's biennial budget.
Any such request approved by the Legislative Assembly shall be
appropriated to the Oregon Department of Administrative Services
for direct allocation to   { - the - }  { +  Oregon Health and
Science University and Portland State + } University. The budget
request to the Legislative Assembly shall include a presentation
on tuition and student fee levels.
  (2) The   { - university - }  budget  { + for each
university + } shall be prepared in accordance with generally
accepted accounting principles and adopted by the  { + board. + }
 { - Oregon Health and Science University Board of Directors in
accordance with ORS 192.610 to 192.710. - }
  SECTION 23.  { + Section 24 of this 2013 Act is added to and
made a part of ORS chapter 353. + }
  SECTION 24.  { + It is the intent of the Legislative Assembly
that:
  (1) The budget of Portland State University continue to be
based on the funding formula used by the State Board of Higher
Education to calculate the budgets for public universities under
the jurisdiction of the State Board of Higher Education;
  (2) The Portland Metropolitan Universities Board of Directors
allocate to Portland State University a funding amount that is
based on that funding formula; and
  (3) The Legislative Assembly appropriate to the Oregon
Department of Administrative Services for direct allocation to
Portland State University an amount that is based on that funding
formula. + }
  SECTION 25. ORS 353.160 is amended to read:
  353.160. Nothing in this chapter affects the constitutional
duties and authority of the Secretary of State to audit public
accounts. However,   { - the - }  Oregon Health and Science
University { +  and Portland State University + } shall conduct
independent audits if the audits are considered advisable by the
 { - university - }  { +  Portland Metropolitan Universities
Board of Directors + }. Subject to ORS 297.250, the audits are
subject to the exclusive discretion and control of the
 { - university - }  { +  board + }.   { - The audits are subject
to disclosure pursuant to ORS 192.410 to 192.505. - }
  SECTION 26. ORS 353.180 is amended to read:
  353.180.   { - Oregon Health and Science University - }  { +
The Portland Metropolitan Universities Board of Directors + } may
adopt policies relating to the creation, use, custody and
disclosure, including access, of student education records of
 { - the - }  { +  Oregon Health and Science University and
Portland State + } University that are consistent with the
requirements of applicable state and federal law. Whenever a
student has attained 18 years of age or is attending
 { - the - }  { +  Oregon Health and Science University or
Portland State + } University, the permission or consent required
of and the rights accorded to a parent of the student regarding
education records shall thereafter only be required of and
accorded to the student.
  SECTION 27. ORS 353.190 is amended to read:
  353.190. (1)   { - No student shall be refused admission to
the - } Oregon Health and Science University   { - or be
expelled - }  { +  and Portland State University may not refuse
admission to or expel an individual + } for the sole reason that,
because of religious beliefs, the   { - student - }  { +
individual + } is unable to attend classes on a particular day.
  (2) Any student   { - in - }   { + at + } the university who,
because of religious beliefs, is unable to attend classes on a
particular day shall be excused on that day from any examination,
study requirement or work requirement. However, at the student's
own expense the student shall make up the examination, study
requirement or work requirement missed because of the absence.
  SECTION 28. ORS 353.200, as amended by section 9, chapter 106,
Oregon Laws 2012, is amended to read:
  353.200. (1) A student at   { - the - }  Oregon Health and
Science University { +  or Portland State University + } who is a
member of the military, a member of the commissioned corps of the
National Oceanic and Atmospheric Administration or a member of
the Public Health Service of the United States Department of
Health and Human Services detailed by proper authority for duty
with the Army or Navy of the United States and who is ordered to
federal or state active duty for more than 30 consecutive days
has the following rights:
  (a) With regard to a course in which the student is enrolled
and for which the student has paid tuition and fees, the right
to:
  (A) Withdraw from the course, subject to the provisions of
subsection (2) of this section;
  (B) Receive a grade of incomplete and, upon release from active
duty, complete the course in accordance with the practice of the
university for completion of incomplete courses; or
  (C) Continue and complete the course for full credit, subject
to the provisions of subsection (3) of this section;
  (b) The right to a credit described in ORS 353.202 for all
amounts paid for room, board, tuition and fees;
  (c) If the student elects to withdraw from the university, the
right to be readmitted and reenrolled at the university within

one year after release from active duty without a requirement of
redetermination of admission eligibility; and
  (d) The right to continuation of scholarships and grants
awarded to the student that were funded by the university or the
Oregon Student Access Commission before the student was ordered
to active duty.
  (2) If the student elects to withdraw from a course under
subsection (1)(a)(A) of this section, the university may not:
  (a) Give the student academic credit for the course from which
the student withdraws;
  (b) Give the student a failing grade or a grade of incomplete
or make any other negative annotation on the student's record; or
  (c) Alter the student's grade point average due to the
student's withdrawal from the course.
  (3) A student who elects to continue and complete a course for
full credit under subsection (1)(a)(C) of this section is subject
to the following conditions:
  (a) Course sessions the student misses due to active duty shall
be counted as excused absences and may not adversely impact the
student's grade for the course or rank in the student's class.
  (b) The student may not be automatically excused from
completing course assignments due during the period the student
serves on active duty.
  (c) A letter grade or a grade of pass may be awarded only if,
in the opinion of the teacher of the course, the student
completes sufficient work and demonstrates sufficient progress
toward meeting course requirements to justify the grade.
  (4) The   { - Oregon Health and Science University - }  { +
Portland Metropolitan Universities + } Board of Directors shall
adopt rules for the administration of this section.
  (5) As used in this section, 'member of the military' means a
person who is a member of:
  (a) The Oregon National Guard or the National Guard of any
other state or territory; or
  (b) The reserves of the Army, Navy, Air Force, Marine Corps or
Coast Guard of the United States.
  SECTION 29. ORS 353.202 is amended to read:
  353.202. (1)(a) The amount of the credit specified in ORS
353.200 (1)(b) shall be based on:
  (A) The amount of room and board paid by the student for a term
that the student does not complete because the student is ordered
to active duty; and
  (B) The amount of tuition and fees paid by the student for a
course from which the student withdraws.
  (b) The amount of the credit shall be prorated based on the
number of weeks remaining in the term or course when the student
withdraws.
  (c) At the time a student withdraws from a course at
 { - the - } Oregon Health and Science University  { + or
Portland State University + } or from   { - the - }  { +
either + } university, the student must elect to claim the
credit:
  (A) As a credit toward tuition and fees or room and board if
the student reenrolls at the university under ORS 353.200 (1)(c);
or
  (B) As a monetary payment.
  (2) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section may change the
method of claiming the credit to the method described in
subsection (1)(c)(B) of this section by giving notice to the
university.
  (3) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section must use the
credit or change the method of claiming the credit under
subsection (2) of this section within one year after release from
active duty.
  (4) A personal representative of a student who elected to claim
the credit by the method described in subsection (1)(c)(A) of
this section may claim a monetary payment upon presenting
evidence to the university that the student died while serving on
active duty.
  (5) The   { - Oregon Health and Science University - }  { +
Portland Metropolitan Universities + } Board of Directors shall
adopt rules for the administration of this section, including
rules that determine the amount of credit and the method by which
the credit is prorated.
  SECTION 30. ORS 353.205 is amended to read:
  353.205.   { - The - }  Oregon Health and Science University
 { + and Portland State University + } shall give credit for
education and training obtained by a person while serving in the
Armed Forces of the United States, as defined in ORS 351.642. The
education and training for which credit may be given must meet
the standards adopted by the   { - Oregon Health and Science
University - }  { +  Portland Metropolitan Universities + } Board
of Directors by rule.
  SECTION 31. ORS 353.210 is amended to read:
  353.210. (1) The   { - Oregon Health and Science University - }
 { +  Portland Metropolitan Universities Board of Directors + }
shall convene a physical access committee to identify barriers to
access by persons with disabilities at   { - the - }  { +  Oregon
Health and Science University and Portland State  + }University.
The committee shall include, but not be limited to:
  (a) One or more students with disabilities or, if there are no
students with disabilities willing to participate, a person with
a disability who uses   { - the university's - }   { + campus + }
facilities;
  (b) One or more members of the faculty or staff with
disabilities;
  (c) The   { - coordinator - }  { +  coordinators + } of
services for students with disabilities for   { - the - }  { +
each + } university;
  (d) One or more administrators of   { - the - }  { +  each + }
university; and
  (e) One or more members of the physical plant staff of
 { - the - }  { +  each + } university.
  (2) The physical access committee shall present its findings
and recommendations to the   { - administration of the
university - }  { +  board + }, listing access needs and
priorities for meeting those needs. These findings and
recommendations shall identify the barriers to access that
prevent persons with disabilities from meaningfully utilizing
campus facilities related to instruction, academic support,
assembly and residence life.
  (3) In preparing   { - budget - }   { + funding + } requests
for each biennium  { +  under ORS 353.140 + }, the
 { - university - }   { + board + } shall include amounts for
capital improvement that will be applied to the substantial
reduction and eventual elimination of barriers to access by
persons with disabilities as identified by the physical access
committee.
  (4) Nothing in this section and ORS 185.155 and 341.937
requires   { - the - }  { +  either + } university to undertake
projects for accessibility that are not otherwise required unless
 { - such projects are funded specifically by - }  the
Legislative Assembly  { +  specifically appropriates funds for
the projects + }.
  SECTION 32. ORS 353.250 is amended to read:
  353.250. Notwithstanding the provisions of ORS chapters 238 and
238A, the   { - Oregon Health and Science University - }  { +
Portland Metropolitan Universities Board of Directors + } may
offer to   { - its - } employees { +  of Oregon Health and
Science University and Portland State University + }, in addition
to the Public Employees Retirement System, alternative retirement
programs.
  SECTION 33. ORS 353.260 is amended to read:
  353.260. (1)   { - Oregon Health and Science University - }
 { +  The Portland Metropolitan Universities Board of
Directors + } may adopt policies governing access to university
personnel records that are less than 25 years old.
  (2) Policies adopted under subsection (1) of this section shall
require that personnel records be   { - subjected - }
 { + subject + } to restrictions on access unless the president
of   { - the - }  { +  Oregon Health and Science University or
the president of Portland State + } University finds that the
public interest in maintaining individual rights to privacy in an
adequate educational environment would not suffer by disclosure
of such records. Access to such records may be limited to
designated classes of information or persons, or to stated times
and conditions, or to both, but cannot be limited for records
more than 25 years old.
  (3)   { - No - }  { +  A + } rule or order adopted pursuant to
this section
  { - shall - }  { +  cannot + } deny to a faculty member full
access to the  { + faculty + } member's personnel file or records
kept by   { - the - }  { +  either + } university, except as
provided in subsection (4)(d) and (e) of this section.
  (4)(a) The files relating to the evaluation of a faculty member
shall be kept in designated, available locations.
  (b) Any evaluation received by telephone shall be documented in
each of the faculty member's files by means of a written summary
of the conversation with the names of the conversants identified.
  (c) A faculty member shall be entitled to submit, for placement
in the files, evidence rebutting, correcting, amplifying or
explaining any document contained therein and other material that
the  { + faculty + } member believes might be of assistance in
the evaluation process.
  (d) Letters and other information for a faculty member of
  { - the - }  { +  either + } university submitted in confidence
to the State Board of Higher Education or its public universities
or offices, schools or departments prior to July 1, 1975, shall
be maintained in the files designated by paragraph (a) of this
subsection. However, if a faculty member requests access to those
files, the anonymity of the contributor of letters and other
information obtained prior to July 1, 1975, shall be protected.
The full text shall be made available, except that portions of
the text that would serve to identify the contributor shall be
excised by a faculty committee.  Only the names of the
contributors and the excised portions of the documents may be
kept in a file other than the files designated by paragraph (a)
of this subsection.
  (e) Confidential letters and other information submitted to or
solicited by   { - the - }  { +  Oregon Health and Science
 + }University after July 1, 1995, { +  or by Portland State
University after July 1, 2015, + } and prior to the employment of
a prospective faculty member are exempt from the provisions of
this paragraph. However, if the member is employed by the
university, the confidential preemployment materials shall be
placed in the files designated by paragraph (a) of this
subsection. If a faculty member requests access to the
 { + faculty + } member's files, the anonymity of the contributor
of confidential preemployment letters and other preemployment
information shall be protected. The full text shall be made
available, except that portions of the text that would serve to
identify the contributor shall be excised and retained in a file
other than the files designated by paragraph (a) of this
subsection.
  (f) Classroom survey evaluations by students of a faculty
member's classroom or laboratory performance shall be anonymous.
The record of tabulated reports shall be placed in at least one
of the files designated by paragraph (a) of this subsection. All
survey instruments used to obtain evaluation data shall be
returned to the faculty member.
  (g) The   { - university - }  { +  universities + }, when
evaluating   { - its - } employed faculty members,
 { - shall - }  { +  may + } not solicit or accept letters,
documents or other materials, given orally or in written form,
from individuals or groups who wish their identity kept anonymous
or the information they provide kept confidential.
  (5)   { - No - }  { +  A + } policy or order adopted pursuant
to this section
  { - limits - }  { +  does not limit + } the authority of the
 { - university - }  { +  universities + } to prepare, without
identification of individual persons who have not consented
thereto, statistical or demographic reports from personnel
records.
  (6) Any category of personnel records specifically designated
as confidential pursuant to valid policies or orders as provided
in this section   { - shall not be deemed - }   { + is not + } a
public record for the purposes of ORS 192.420.
  (7) As used in this section, 'personnel records' means records
containing information kept by the   { - university - }  { +
universities + } concerning a faculty member and furnished by the
faculty member or by others about the faculty member at the
  { - member's - }  { +  request of the faculty member, + } or at
the   { - university's - } request { +  of the university
employing the faculty member + }, including but not limited to
information concerning discipline, membership activity,
employment performance or other personal records of individual
persons.
  SECTION 34. ORS 353.270 is amended to read:
  353.270. (1)   { - Oregon Health and Science University - }
 { +  Portland Metropolitan Universities Board of Directors + }
may authorize receipt of compensation for any officer or employee
of   { - the - }  { +  Oregon Health and Science University or
Portland State + } University from private or public resources,
including but not limited to income from:
  (a) Consulting;
  (b) Appearances and speeches;
  (c) Intellectual property conceived, reduced to practice or
originated and therefore owned within the university;
  (d) Providing services or other valuable consideration for a
private corporation, individual or entity, whether paid in cash
or in kind, stock or other equity interest, or anything of value
regardless of whether there is a licensing agreement between
 { - the - }  { +  either + } university and the private entity;
  (e) Performing public duties paid by private organizations,
including university corporate affiliates, that augment an
officer's or employee's publicly funded salary. Such income shall
be authorized and received in accordance with policies
established by the   { - university - }  { +  board + }; and
  (f) Providing medical and other health services.
  (2) The   { - university - }  { +  board + } may not authorize
compensation, as described in subsection (1) of this section,
that, in the
  { - university's - }  { +  board's + } judgment, does not
comport with the missions of   { - the - }  { +  each + }
university or substantially interferes with an officer's or
employee's duties to   { - the - }   { + that + } university.
  (3) Any compensation described and authorized under subsection
(1) of this section is considered official compensation or
reimbursement of expenses for purposes of ORS 244.040 and is not
considered an honorarium prohibited by ORS 244.042. If
authorization or receipt of the compensation creates a potential

conflict of interest, the officer or employee shall report the
potential conflict in writing in accordance with policies of the
  { - university - }  { +  board + }. The disclosure is a public
record subject to public inspection.
  (4) The   { - university - }  { +  board + } shall adopt
standards governing employee outside employment and activities of
employees, including potential conflicts of interest, as defined
by the   { - university - }  { +  board + } and consistent with
ORS 244.020, and the public disclosure thereof, and procedures
for reporting and hearing potential or actual conflict of
interest complaints.
  SECTION 35. ORS 353.280 is amended to read:
  353.280.  { + (1) + } The president and professors constitute
the faculty of   { - the - }  Oregon Health and Science
University and as such have the immediate government and
discipline of   { - it - }  { +  the university + } and the
students therein. The faculty may, subject to the supervision of
the   { - Oregon Health and Science University - }  { +  Portland
Metropolitan Universities + } Board of Directors, prescribe the
course of study to be pursued at the university and the textbooks
to be used.
   { +  (2) The president and professors constitute the faculty
of Portland State University and as such have the immediate
government and discipline of the university and the students
therein. The faculty may, subject to the supervision of the
Portland Metropolitan Universities Board of Directors, prescribe
the course of study to be pursued at the university and the
textbooks to be used. + }
  SECTION 36. ORS 353.290 is amended to read:
  353.290. The   { - Oregon Health and Science University - }
 { +  Portland Metropolitan Universities Board of Directors + }
shall consider and maintain affirmative action plans and goals
when reductions in faculty and staff  { + of Oregon Health and
Science University or Portland State University + } are required
as a result of:
  (1) Reductions in revenue that necessitate discontinuance of
  { - its - }  educational   { - program at its anticipated
level - }  { +  programs at anticipated levels + };
  (2) Elimination of classes due to decreased student enrollment;
or
  (3) Reduction in courses due to administrative decisions.
  SECTION 37. ORS 353.300 is amended to read:
  353.300.   { - No - }  { +  Oregon Health and Science
University and Portland State University may not conduct a + }
political or sectarian test   { - shall ever be allowed or
applied - }  in the appointment of faculty and other employees
 { - of the Oregon Health and Science University - } .
  SECTION 38. ORS 353.340 is amended to read:
  353.340.   { - Oregon Health and Science University - }  { +
The Portland Metropolitan Universities Board of Directors + } may
from time to time issue and sell revenue bonds in accordance with
ORS chapter 287A.  However, the provisions contained in ORS
287A.150 (2) to (6) do not apply to revenue bonds issued by the
 { - university - }  { +  board + }. Such revenue bonds
 { - shall - }  { +  may + } not in any manner nor to any extent
be a general obligation of the   { - university - }  { +
board + } nor a charge upon any revenues or property of the
 { - university - }  { +  board + } not specifically pledged
thereto. An obligation described in this section is not an
indebtedness of the State of Oregon.
  SECTION 39. ORS 353.350 is amended to read:
  353.350. Revenue bonds issued by the   { - Oregon Health and
Science University - }  { +  Portland Metropolitan Universities
Board of Directors + } pursuant to ORS chapter 287A shall be
considered to be bonds of a political subdivision of the State of
Oregon for the purposes of all laws of the state.
  SECTION 40. ORS 353.360 is amended to read:
  353.360. Refunding bonds of the same character and tenor as
those replaced thereby may be issued by the   { - Oregon Health
and Science University - }  { +  Portland Metropolitan
Universities Board of Directors + } pursuant to ORS 287A.360 to
287A.380.
  SECTION 41. ORS 353.370 is amended to read:
  353.370.  { + (1) + } In addition to, and not in limitation of,
the means of satisfying state general obligation bond obligations
under ORS 291.445,   { - Oregon Health and Science University - }
 { +  the Portland Metropolitan Universities Board of
Directors + }, promptly upon the discovery of any shortfall in
moneys available to the
  { - university - }   { + board + } for the payment when due of
amounts under any bonds, certificates of participation, financing
agreements or other agreements for the borrowing of moneys issued
prior to July 1, 1995, by the State of Oregon on behalf of the
State Board of Higher Education for equipment or projects for
 { - the - }  { +  Oregon Health and Science + } University,
shall notify in writing the Legislative Assembly, or { + , + } if
the Legislative Assembly is not in session, the Emergency Board,
of the existence and amount of the shortfall.
   { +  (2) In addition to, and not in limitation of, the means
of satisfying state general obligation bond obligations under ORS
291.445, the Portland Metropolitan Universities Board of
Directors, promptly upon the discovery of any shortfall in moneys
available to the board for the payment when due of amounts under
any bonds, certificates of participation, financing agreements or
other agreements for the borrowing of moneys issued prior to July
1, 2015, by the State of Oregon on behalf of the State Board of
Higher Education for equipment or projects for Portland State
University, shall notify in writing the Legislative Assembly, or,
if the Legislative Assembly is not in session, the Emergency
Board, of the existence and amount of the shortfall.
  (3) + } The Legislative Assembly or the Emergency Board, as the
case may be, may provide funds to satisfy the payment of any such
amount. By enacting this provision, the Legislative Assembly
acknowledges its current intention to provide, from funds other
than those appropriated or otherwise made available to the Oregon
University System, funds to pay such amount. However, except as
may be required by the Oregon Constitution or ORS 291.445,
neither the Legislative Assembly nor the Emergency Board shall
have any legal obligation to provide funds under this section.
  SECTION 42. ORS 353.380 is amended to read:
  353.380. As used in ORS 353.380 to 353.420:
  (1) 'Credit enhancement agreement' means any agreement or
contractual relationship between the   { - Oregon Health and
Science University - }  { +  Portland Metropolitan Universities
Board of Directors + } and any bank, trust company, insurance
company, surety bonding company, pension fund or other financial
institution providing additional credit on or security for a
financing agreement or certificates of participation authorized
by ORS 353.380 to 353.420.
  (2) 'Financing agreement' means a lease-purchase agreement, an
installment sale agreement, a loan agreement, note agreement,
short-term promissory notes, commercial papers, lines of credit
or similar obligations or any other agreement to finance real or
personal property that is or will be owned and operated by
 { - the - }  { +  Oregon Health and Science University or
Portland State + } University, or to refinance previously
executed financing agreements.
  (3) 'Personal property' means tangible personal property,
software and fixtures.
  (4) 'Property rights' means, with respect to personal property,
the rights of a secured party under ORS chapter 79, and, with

respect to real property, the rights of a trustee or lender under
a lease authorized by ORS 353.410 (4).
  (5) 'Software' means software and training and maintenance
contracts related to the operation of computing equipment.
  SECTION 43. ORS 353.390 is amended to read:
  353.390.   { - Oregon Health and Science University - }  { +
The Portland Metropolitan Universities Board of Directors + } may
enter into financing agreements in accordance with ORS 353.380 to
353.420, upon such terms as the   { - university - }  { +
board + } finds to be advantageous. Amounts payable by the
 { - university - }  { +  board + } under a financing agreement
shall be limited to funds specifically pledged, budgeted for or
otherwise made available by the
  { - university - }  { +  board + }. If there are insufficient
available funds to pay amounts due under a financing agreement,
the lender may exercise any property rights that the
 { - university - }  { +  board + } has granted to   { - it - }
 { +  the lender + } in the financing agreement against the
property that was purchased with the proceeds of the financing
agreement, and may apply the amounts so received toward payments
scheduled to be made by the   { - university - }  { +  board + }
under the financing agreement.
  SECTION 44. ORS 353.400 is amended to read:
  353.400. The   { - Oregon Health and Science University - }
 { +  Portland Metropolitan Universities + } Board of Directors
may delegate to any board member,  { + or to any + } officer or
employee of the Oregon Health and Science University { +  or
Portland State University + } the authority to determine maturity
dates, principal amounts, redemption provisions, interest rates
or methods for determining variable or adjustable interest rates,
denominations and other terms and conditions of such obligations
that are not appropriately determined at the time of enactment or
adoption of the authorizing resolution. The board may also
delegate entering into financing agreements or any other
instruments authorized by law. This delegated authority shall be
exercised subject to applicable requirements of law and such
limitations and criteria as may be set forth in the authorizing
resolution.
  SECTION 45. ORS 353.410 is amended to read:
  353.410.   { - Oregon Health and Science University - }  { +
The Portland Metropolitan Universities Board of Directors + }
may:
  (1) Enter into agreements with third parties to hold financing
agreement proceeds, payments and reserves as security for
lenders, and to issue certificates of participation in the right
to receive payments due from the   { - university - }  { +
board + } under a financing agreement. Amounts so held shall be
invested at the direction of the   { - Oregon Health and Science
University Board of Directors - }  { +  board + }. Interest
earned on any investments held as security for a financing
agreement may, at the option of the board, be credited to the
accounts held by the third party and applied in payment of sums
due under a financing agreement.
  (2) Enter into credit enhancement agreements for financing
agreements or certificates of participation, provided that such
credit enhancement agreements shall be payable solely from funds
specifically pledged, budgeted for or otherwise made available by
the   { - university - }  { +  board + } and amounts received
from the exercise of property rights granted under such financing
agreements.
  (3) Use financing agreements to finance the costs of acquiring
or refinancing real or personal property, plus the costs of
reserves, credit enhancements and costs associated with obtaining
the financing.
  (4) Grant leases of real property with a trustee or lender.
Such leases may be for a term that ends on the date on which all
amounts due under a financing agreement have been paid or
provision for payment has been made, or up to 20 years after the
last scheduled payment under a financing agreement, whichever is
later. Such leases may grant the trustee or lender the right to
evict   { - the - }  { +  Oregon Health and Science University or
Portland State + } University and exclude   { - it - }  { +  the
university + } from possession of the real property for the term
of the lease if the   { - university - }  { +  board + } fails to
pay when due the amounts scheduled to be paid under a financing
agreement, or otherwise defaults under a financing agreement.
Upon default, the trustee or lender may sublease the land to
third parties and apply any rentals toward payments scheduled to
be made under a financing agreement.
  (5) Grant security interests in personal property to trustees
or lenders.
  (6) Make pledges for the benefit of trustees and lenders.
  (7) Purchase fire and extended coverage or other casualty
insurance for property that is acquired or refinanced with
proceeds of a financing agreement, assign the proceeds thereof to
a lender or trustee to the extent of their interest, and covenant
to maintain such insurance while the financing agreement is
unpaid,   { - so - }   { + as + } long as available funds are
sufficient to purchase such insurance.
  SECTION 46. ORS 353.440 is amended to read:
  353.440. The Legislative Assembly finds that:
  (1) Public universities in the Oregon University System and
other educational sectors have academic programs that are related
to or integrated with the programs of Oregon Health and Science
University { +  and Portland State University + }.
  (2) It is in the best interest of the state that a coordinated
approach be taken to these related and integrated academic
programs.
  (3) In order to best ensure the continued harmony of such
academic programs,   { - the - }  Oregon Health and Science
University { + , Portland State University + } and the Oregon
University System shall coordinate such programs and shall advise
each other of the following proposed changes to such academic
programs:
  (a) Creation or significant revision, such as a merger or
closure, of degree programs;
  (b) Creation or significant revision, such as a merger or
closure, of schools; and
  (c) Creation or significant revision of major academic
policies.
  (4)   { - The - }  Oregon Health and Science University { + ,
Portland State University + } and the Higher Education
Coordinating Commission shall coordinate and advise each other of
the following types of proposed changes to their related or
integrated academic programs:
  (a) Coordination of strategic plans for achieving higher
education goals;
  (b) Seeking advice and input from each other on modifications
to statutory educational missions;
  (c) Working to develop a statewide educational data system;
  (d) Collaborating as necessary on the creation of any new
degree programs; and
  (e) Notifying each other and commenting on tuition rate
changes.
  (5) In order to further the coordination described by this
section,  { + officers of + } Oregon Health and Science
University { +  and Portland State University + }
 { - officers - }  shall maintain a role in the appropriate
committees of the State Board of Higher Education, the Higher
Education Coordinating Commission and the Oregon University
System.
  SECTION 47. ORS 353.445 is amended to read:
  353.445. The   { - Oregon Health and Science University - }
 { +  Portland Metropolitan Universities + } Board of Directors
shall adopt a policy that prescribes the requirements for a
venture grant program and the requirements that a grant applicant
must meet in order to receive grant moneys from   { - the - }
 { + a + } university venture development fund   { - operated - }
 { + administered + } by Oregon Health and Science
University { +  or Portland State University + }, including
requirements:
  (1) That a grant recipient remain within this state for at
least five years following the receipt of a grant or repay the
grant plus interest;
  (2) That   { - the - }   { + each + } university report amounts
of tax credit certificates issued by   { - the - }   { + that + }
university and cease issuing certificates until the total amount
owed to the General Fund by
  { - the - }   { + that + } university at any one time under ORS
351.697 (6) does not exceed $2.4 million; and
  (3) That   { - the - }   { + each + } university maintain
records of income realized by   { - the - }   { + that + }
university as the result of grants made from the fund and records
of amounts paid to the General Fund.
  SECTION 48. ORS 353.600 is amended to read:
  353.600. As used in ORS 353.600 to 353.612:
  (1) 'Committee' means the Oregon Nursing Shortage Coalition
Committee created in ORS 353.606.
  (2) 'Post-secondary education institution' means:
  (a) A public university listed in ORS 352.002;
  (b) A community college operated under ORS chapter 341;
  (c) A school or division of Oregon Health and Science
University;   { - or - }
   { +  (d) A school or division of Portland State University;
or + }
    { - (d) - }  { +  (e) + } An Oregon-based, generally
accredited, not-for-profit private institution of higher
education.
  SECTION 49. ORS 15.400 is amended to read:
  15.400. For the purposes of ORS 15.400 to 15.460:
  (1) 'Conduct' means an act or omission that has occurred or
that may occur in the future.
  (2) 'Domicile' means the place identified under ORS 15.420.
  (3) 'Injury' means physical or nonphysical harm to a person or
property caused by the conduct of another person.
  (4) 'Law,' when used in reference to the law of another state,
does not include that state's choice-of-law rules.
  (5) 'Noncontractual claim' means a claim, other than a claim
for failure to perform a contractual or other consensual
obligation, that arises from a tort as defined in ORS 30.260, or
any conduct that caused or may cause injury compensable by
damages, without regard to whether damages are sought.
  (6) 'Person' means a person as defined in ORS 174.100 and a
public body.
  (7) 'Public body' means a public body as defined in ORS
174.109,   { - the - }  Oregon Health and Science
University, { +  Portland State University + } and the Oregon
State Bar.
  (8) 'State' means, unless the context requires otherwise, the
United States, any state, territory, possession or other
jurisdiction of the United States, any Indian tribe or other
Native American, Hawaiian or Alaskan group recognized by federal
law or formally acknowledged by a state of the United States, and
any foreign country or territorial subdivision of such country
that has its own system of laws.
  SECTION 50. ORS 97.170 is amended to read:
  97.170. (1) As used in this section, 'indigent person ' means a
deceased person who does not have a death or final expense
benefit or insurance policy that pays for disposition of the
deceased person's body or other means to pay for disposition of
the deceased person's body and who has no relative or other
person with the legal right to direct and the means to pay for
disposition of the deceased person's body.
  (2)(a) The   { - Oregon Health and Science University - }  { +
Portland Metropolitan Universities Board of Directors + } shall
appoint a Demonstrator of Anatomy from the staff of the
 { + Oregon Health and Science + } University.
  (b) The Demonstrator of Anatomy shall maintain a list of
institutions that may accept or process bodies for education or
research purposes.
  (3) A medical examiner as defined in ORS 146.003 or a health
care facility as defined in ORS 442.015 that has charge of an
unclaimed body of a deceased person shall promptly attempt to
locate and notify the relatives of the deceased person or other
persons who have an interest in the deceased person and shall
arrange with any person who will pay the expenses to make
disposition of the body. If the medical examiner or health care
facility cannot locate a person who will pay the expenses of
disposition of the body, the medical examiner or health care
facility may transfer the body to a licensed funeral service
practitioner.
  (4)(a) A licensed funeral service practitioner who takes
custody of the unclaimed body of a deceased person shall promptly
verify that a medical examiner or health care facility attempted
to locate relatives and interested persons as provided in
subsection (3) of this section.
  (b) If a medical examiner or health care facility has not
attempted to locate relatives and interested persons as provided
in subsection (3) of this section, the funeral service
practitioner shall, within five days after taking custody of the
body, attempt to locate and notify relatives and interested
persons and shall arrange with any person who will pay the
expenses to make disposition of the body.
  (c) If no one claims the body within five days after the
funeral service practitioner takes custody of the body, or if the
persons notified acquiesce, the funeral service practitioner may
transfer the body to an institution approved by the Demonstrator
of Anatomy under subsection (2) of this section that desires the
body for education or research purposes. The funeral service
practitioner shall arrange with an institution that desires the
body to pay for care, preparation and transportation of the body
to the institution.
  (d) If no relative, interested person or institution claims the
body as provided in paragraphs (b) and (c) of this subsection,
the funeral service practitioner may cremate or bury the body
without the consent of persons listed in ORS 97.130 and is
indemnified from any liability arising from having made such
disposition. The method of disposition must be in the least
costly and most environmentally sound manner that complies with
law, and that does not conflict with known wishes of the
deceased. If the deceased person is an indigent person, the
Department of Human Services shall reimburse the funeral service
practitioner for the costs of disposition under subsection (6) of
this section.
  (5) When the deceased person is a child over whom the
department held guardianship at the time of death, the department
shall promptly attempt to locate and notify the relatives of the
deceased child or any other person who has an interest in the
deceased child and shall arrange with any person who will pay the
expenses to make disposition of the body. If no relatives or
interested persons claim the body, the department may transfer
the body to an institution that is on the list maintained by the
Demonstrator of Anatomy under subsection (2) of this section that
desires the body for education or research purposes, or may
authorize burial or cremation of the body. The department shall
pay expenses related to burial or cremation authorized by the
department under this subsection.
  (6) Upon receipt of an itemized statement of expenses and proof
as required by the department by rule that the deceased person is
an indigent person, the department shall reimburse a funeral
service practitioner the reasonable costs for disposition of the
body of any unclaimed deceased indigent person. The method of
disposition must be in the least costly and most environmentally
sound manner that complies with law. The department may adopt
rules establishing the process for reimbursement and setting the
maximum amount that may be reimbursed to a funeral service
practitioner under this subsection.
  SECTION 51. ORS 131.594 is amended to read:
  131.594. (1) After the seizing agency distributes property
under ORS 131.588, and when the seizing agency is not the state,
the seizing agency shall dispose of and distribute property as
follows:
  (a) The seizing agency shall pay costs first from the property
or its proceeds. As used in this subsection, 'costs ' includes
the expenses of publication, service of notices, towing, storage
and servicing or maintaining the seized property under ORS
131.564.
  (b) After costs have been paid, the seizing agency shall
distribute to the victim any amount the seizing agency was
ordered to distribute under ORS 131.588 (4).
  (c) After costs have been paid and distributions under
paragraph (b) of this subsection have been made, the seizing
agency shall distribute the rest of the property to the general
fund of the political subdivision that operates the seizing
agency.
  (2) Of the property distributed under subsection (1)(c) of this
section, the political subdivision shall distribute:
  (a) Three percent to the Asset Forfeiture Oversight Account
established in ORS 131A.460;
  (b) Seven percent to the Illegal Drug Cleanup Fund established
in ORS 475.495 for the purposes specified in ORS 475.495 (5) and
(6); and
  (c) Ten percent to the state General Fund.
  (3) Of the property distributed under subsection (1)(c) of this
section that remains in the general fund of the political
subdivision after the distributions required by subsection (2) of
this section have been made:
  (a) Fifty percent must be for official law enforcement use; and
  (b) Fifty percent must be used for substance abuse treatment
pursuant to a plan developed under ORS 430.420.
  (4) Except as otherwise provided by intergovernmental
agreement, the seizing agency may:
  (a) Sell, lease, lend or transfer the property or proceeds to
any federal, state or local law enforcement agency or district
attorney.
  (b) Sell the forfeited property by public or other commercially
reasonable sale and pay from the proceeds the expenses of keeping
and selling the property.
  (c) Retain the property.
  (d) With written authorization from the district attorney for
the seizing agency's jurisdiction, destroy any firearms or
controlled substances.
  (5) A political subdivision may sell as much property as may be
needed to make the distributions required by subsections (1) and
(2) of this section. A political subdivision shall make
distributions to the Asset Forfeiture Oversight Account, the
Illegal Drug Cleanup Fund and the state General Fund that are
required by subsection (2) of this section once every three
months. The distributions are due within 20 days of the end of

each quarter. Interest does not accrue on amounts that are paid
within the period specified by this subsection.
  (6) A seizing agency may donate growing equipment and
laboratory equipment that was used, or intended for use, in
manufacturing of controlled substances to a public school,
community college { + , Portland State University + } or public
university listed in ORS 352.002.
  (7) This section applies only to criminal forfeiture proceeds
arising out of prohibited conduct.
  SECTION 52. ORS 174.108 is amended to read:
  174.108. (1) As used in the statutes of this state, a term
defined in ORS 174.108 to 174.118 has the meaning provided by ORS
174.108 to 174.118 only if the statute using the term makes
specific reference to the provision of ORS 174.108 to 174.118
that defines the term and indicates that the term has the meaning
specified in that provision.
  (2) Nothing in ORS 174.108 to 174.118 affects the meaning of
any statute that uses one or more of the terms defined in ORS
174.108 to 174.118 and that is in effect on January 1, 2002.
Nothing in ORS 174.108 to 174.118 affects the meaning of any
statute that uses one or more of the terms defined in ORS 174.108
to 174.118 and that is enacted after January 1, 2002, unless the
statute makes specific reference to the provision of ORS 174.108
to 174.118 that defines the term and indicates that the term has
the meaning specified in that provision.
  (3) None of the terms defined in ORS 174.108 to 174.118
includes the Oregon Health and Science University, { +  Portland
State University, + } the Oregon State Bar, any intergovernmental
entity formed by a public body with another state or with a
political subdivision of another state, or any intergovernmental
entity formed by a public body with an agency of the federal
government.
  SECTION 53. ORS 181.871, as amended by section 2, chapter 28,
Oregon Laws 2012, is amended to read:
  181.871. (1) ORS 181.870 to 181.887 do not apply to:
  (a) A person certified by the Department of Public Safety
Standards and Training as a police officer or a parole and
probation officer.
  (b) A law enforcement officer of the United States.
  (c) An officer or employee of this state, Oregon Health and
Science University { + , Portland State University + }
 { - established by ORS 353.020 - }  or the United States while
performing duties of the office or employment.
  (d) A person appointed or commissioned by the Governor to
perform law enforcement or security services.
  (e) An attorney admitted to practice law in this state while
engaged in the practice of law.
  (f) An insurance adjuster licensed in this state while
performing duties authorized by the license.
  (g) A person who monitors alarm systems that are not designed
to detect threats to public safety or personal well-being.
  (h) A person while protecting the person's property.
  (i) A person who repairs and installs intrusion alarms while
repairing or installing intrusion alarms.
  (j) A person acting as an investigator as defined in ORS
703.401.
  (k) A person performing crowd management or guest services,
including, but not limited to, a person described as a ticket
taker, an usher, a parking attendant or event staff.
  (L) A person who has a valid service permit issued by the
Oregon Liquor Control Commission pursuant to ORS 471.360 and who
is an employee of a licensee of the commission when the person is
performing age verification and controlling access to premises of
the licensee, if the person is not:
  (A) Armed;

  (B) Permitted to initiate confrontational activities, including
physical contact and the confiscation of property; or
  (C) Hired with the primary responsibility of taking enforcement
action as described in ORS 181.870 (8)(f).
  (m) A person performing security services at a facility
regulated by the United States Nuclear Regulatory Commission if
the facility is operated by the person's employer.
  (n) An individual while on active duty as a member of the armed
services or while performing duties as a law enforcement officer.
  (o) An employee of a financial institution who has been
designated as a security officer for the financial institution
pursuant to the Bank Protection Act of 1968 (12 U.S.C. 1881 et
seq.) and regulations adopted under the act or pursuant to ORS
723.276 (5).
  (p) A person who provides security services as a volunteer or
for de minimis consideration other than money for an event
operated for the benefit of a corporation that is organized not
for profit pursuant to ORS chapter 65 or any predecessor of ORS
chapter 65 or that is exempt from taxation under section 501(a)
of the Internal Revenue Code as an organization described in
section 501(c) of the Internal Revenue Code.
  (q) A student enrolled in a community college as defined in ORS
341.005 while engaged in nonconfrontational activities that
contribute to campus safety under the direct or indirect
supervision of a law enforcement professional or private security
professional certified or licensed by the Department of Public
Safety Standards and Training, provided the community college has
conducted a criminal background check on the student.
  (2) The exemption provided by subsection (1)(k) of this section
applies only:
  (a) To a person who is not:
  (A) Armed;
  (B) Permitted to initiate confrontational activities, including
physical contact and the confiscation of property; or
  (C) Hired with the primary responsibility of taking enforcement
action as described in ORS 181.870 (8)(f);
  (b) If there is at least one person on-site who is certified or
licensed under ORS 181.878 for every 10 or fewer uncertified
persons performing the services described in subsection (1)(k) of
this section;
  (c) If any enforcement action, as described in ORS 181.870
(8)(f), other than incidental or temporary action, is taken by or
under the supervision of a person certified or licensed under ORS
181.878; and
  (d) During the time when a crowd has assembled for the purpose
of attending or taking part in an organized event, including
pre-event assembly, event operation hours and post-event
departure activities.
  (3) The exemption provided by subsection (1)(L) of this section
does not apply during an organized event that is on a scale
substantially outside the ordinary course of the licensee's
business.
  SECTION 54. ORS 183.635 is amended to read:
  183.635. (1) Except as provided in this section, all agencies
must use administrative law judges assigned from the Office of
Administrative Hearings established under ORS 183.605 to conduct
contested case hearings, without regard to whether those hearings
are subject to the procedural requirements for contested case
hearings.
  (2) The following agencies need not use administrative law
judges assigned from the office:
  (a) Attorney General.
  (b) Boards of stewards appointed by the Oregon Racing
Commission.
  (c) Bureau of Labor and Industries and the Commissioner of the
Bureau of Labor and Industries.
  (d) Department of Corrections.
  (e) Department of Education, State Board of Education and
Superintendent of Public Instruction.
  (f) Department of Human Services for vocational rehabilitation
services cases under 29 U.S.C. 722(c) and disability
determination cases under 42 U.S.C. 405.
  (g) Department of Revenue.
  (h) Department of State Police.
  (i) Employment Appeals Board.
  (j) Employment Relations Board.
  (k) Energy Facility Siting Council.
  (L) Fair Dismissal Appeals Board.
  (m) Governor.
  (n) Land Conservation and Development Commission.
  (o) Land Use Board of Appeals.
  (p) Local government boundary commissions created pursuant to
ORS 199.430.
  (q) Oregon University System and public universities listed in
ORS 352.002 { +  and Portland State University + }.
  (r) Oregon Youth Authority.
  (s) Psychiatric Security Review Board.
  (t) The Oregon Health Authority for hearings conducted under
ORS 161.315 to 161.351.
  (u) Public Utility Commission.
  (v) State Accident Insurance Fund Corporation.
  (w) State Apprenticeship and Training Council.
  (x) State Board of Parole and Post-Prison Supervision.
  (y) State Land Board.
  (z) State Treasurer.
  (aa) Wage and Hour Commission.
  (3) The Workers' Compensation Board is exempt from using
administrative law judges assigned from the office for any
hearing conducted by the board under ORS chapters 147, 654 and
656. Except as specifically provided in this subsection, the
Department of Consumer and Business Services must use
administrative law judges assigned from the office only for
contested cases arising out of the department's powers and duties
under:
  (a) ORS 86A.095 to 86A.198, 86A.990 and 86A.992 and ORS chapter
59;
  (b) ORS chapter 455;
  (c) ORS chapter 674;
  (d) ORS chapters 706 to 716;
  (e) ORS chapter 717;
  (f) ORS chapters 723, 725 and 726; and
  (g) ORS chapters 731, 732, 733, 734, 735, 737, 742, 743, 743A,
744, 746, 748 and 750.
  (4) Notwithstanding any other provision of law, in any
proceeding in which an agency is required to use an
administrative law judge assigned from the office, an officer or
employee of the agency may not conduct the hearing on behalf of
the agency.
  (5) Notwithstanding any other provision of ORS 183.605 to
183.690, an agency is not required to use an administrative law
judge assigned from the office if:
  (a) Federal law requires that a different administrative law
judge or hearing officer be used; or
  (b) Use of an administrative law judge from the office could
result in a loss of federal funds.
  (6) Notwithstanding any other provision of this section, the
Department of Environmental Quality must use administrative law
judges assigned from the office only for contested case hearings
conducted under the provisions of ORS 183.413 to 183.470.
  SECTION 55. ORS 184.475 is amended to read:
  184.475. (1) The purposes of information technology
portfolio-based management are to:
  (a) Ensure that state agencies link their information
technology investments with business plans;
  (b) Facilitate risk assessment of information technology
projects and investments;
  (c) Ensure that state agencies justify information technology
investments on the basis of sound business cases;
  (d) Ensure that state agencies facilitate development and
review of information technology performance related to business
operations;
  (e) Identify projects that can cross agency and program lines
to leverage resources; and
  (f) Assist in state government-wide planning for common, shared
information technology infrastructure.
  (2) The Oregon Department of Administrative Services shall
integrate state agency strategic and business planning,
technology planning and budgeting and project expenditure
processes into the department's information technology
portfolio-based management.
  (3) In cooperation with state agencies, the department shall
conduct and maintain a continuous inventory of each state
agency's current and planned investments in information
technology, a compilation of information about those assets and
the total life cycle cost of those assets. The department shall
develop and implement state government-wide standards, processes
and procedures for the required inventory and for the management
of the state government-wide information technology portfolio.
State agencies shall participate in the information technology
portfolio-based management and shall comply with the standards,
processes and procedures established by the department under this
subsection. The provisions of this subsection do not relieve any
state agency from accountability for equipment, materials,
supplies and tangible and intangible personal property under its
control.
  (4) The department shall ensure that state agencies implement
portfolio-based management of information technology resources in
accordance with this section and with rules adopted by the
Director of the Oregon Department of Administrative Services.
  (5) This section does not apply to competitive research grants
and contracts at public universities listed in ORS 352.002  { +
or Portland State University + }.
  (6) In implementing the provisions of this section, the
department shall submit state government-wide policies for review
to the Joint Legislative Committee on Information Management and
Technology.
  SECTION 56. ORS 184.477 is amended to read:
  184.477. (1) The purpose of enterprise management is to create
a plan and implement a state government-wide approach for
managing distributed information technology assets to minimize
total ownership costs from acquisition through retirement, while
realizing maximum benefits for transacting the state's business
and delivering services to its citizens.
  (2) With input and recommendations from state agencies, the
Oregon Department of Administrative Services shall develop a plan
for the state government-wide management of distributed
information technology assets. The plan shall prescribe the state
government-wide infrastructure and services for managing these
assets. The plan shall be submitted to the Joint Legislative
Committee on Information Management and Technology for review.
  (3) Following review by the Joint Legislative Committee on
Information Management and Technology, the department shall
ensure state agency implementation of the plan, including the
development of appropriate standards, processes and procedures.
  (4) State agencies shall participate in the enterprise
management of information technology assets and shall comply with
the standards, processes and procedures of the department.

  (5) This section does not apply to competitive research grants
and contracts at public universities listed in ORS 352.002  { +
or Portland State University + }.
  SECTION 57. ORS 190.410 is amended to read:
  190.410. As used in ORS 190.410 to 190.440, 'public agency '
includes:
  (1) Any county, city, special district or other public
corporation, commission, authority or entity organized and
existing under laws of this state, or any other state, or under
the city or county charter of any county or city of this or any
other state;
  (2) Any agency of this state or any other state;   { - and - }
  (3) Oregon Health and Science University  { - . - }  { + ; and
  (4) Portland State University. + }
  SECTION 58. ORS 192.501 is amended to read:
  192.501. The following public records are exempt from
disclosure under ORS 192.410 to 192.505 unless the public
interest requires disclosure in the particular instance:
  (1) Records of a public body pertaining to litigation to which
the public body is a party if the complaint has been filed, or if
the complaint has not been filed, if the public body shows that
such litigation is reasonably likely to occur. This exemption
does not apply to litigation which has been concluded, and
nothing in this subsection shall limit any right or opportunity
granted by discovery or deposition statutes to a party to
litigation or potential litigation.
  (2) Trade secrets. 'Trade secrets,' as used in this section,
may include, but are not limited to, any formula, plan, pattern,
process, tool, mechanism, compound, procedure, production data,
or compilation of information which is not patented, which is
known only to certain individuals within an organization and
which is used in a business it conducts, having actual or
potential commercial value, and which gives its user an
opportunity to obtain a business advantage over competitors who
do not know or use it.
  (3) Investigatory information compiled for criminal law
purposes. The record of an arrest or the report of a crime shall
be disclosed unless and only for so long as there is a clear need
to delay disclosure in the course of a specific investigation,
including the need to protect the complaining party or the
victim.  Nothing in this subsection shall limit any right
constitutionally guaranteed, or granted by statute, to disclosure
or discovery in criminal cases. For purposes of this subsection,
the record of an arrest or the report of a crime includes, but is
not limited to:
  (a) The arrested person's name, age, residence, employment,
marital status and similar biographical information;
  (b) The offense with which the arrested person is charged;
  (c) The conditions of release pursuant to ORS 135.230 to
135.290;
  (d) The identity of and biographical information concerning
both complaining party and victim;
  (e) The identity of the investigating and arresting agency and
the length of the investigation;
  (f) The circumstances of arrest, including time, place,
resistance, pursuit and weapons used; and
  (g) Such information as may be necessary to enlist public
assistance in apprehending fugitives from justice.
  (4) Test questions, scoring keys, and other data used to
administer a licensing examination, employment, academic or other
examination or testing procedure before the examination is given
and if the examination is to be used again. Records establishing
procedures for and instructing persons administering, grading or
evaluating an examination or testing procedure are included in
this exemption, to the extent that disclosure would create a risk
that the result might be affected.
  (5) Information consisting of production records, sale or
purchase records or catch records, or similar business records of
a private concern or enterprise, required by law to be submitted
to or inspected by a governmental body to allow it to determine
fees or assessments payable or to establish production quotas,
and the amounts of such fees or assessments payable or paid, to
the extent that such information is in a form which would permit
identification of the individual concern or enterprise. This
exemption does not include records submitted by long term care
facilities as defined in ORS 442.015 to the state for purposes of
reimbursement of expenses or determining fees for patient care.
Nothing in this subsection shall limit the use which can be made
of such information for regulatory purposes or its admissibility
in any enforcement proceeding.
  (6) Information relating to the appraisal of real estate prior
to its acquisition.
  (7) The names and signatures of employees who sign
authorization cards or petitions for the purpose of requesting
representation or decertification elections.
  (8) Investigatory information relating to any complaint filed
under ORS 659A.820 or 659A.825, until such time as the complaint
is resolved under ORS 659A.835, or a final order is issued under
ORS 659A.850.
  (9) Investigatory information relating to any complaint or
charge filed under ORS 243.676 and 663.180.
  (10) Records, reports and other information received or
compiled by the Director of the Department of Consumer and
Business Services under ORS 697.732.
  (11) Information concerning the location of archaeological
sites or objects as those terms are defined in ORS 358.905,
except if the governing body of an Indian tribe requests the
information and the need for the information is related to that
Indian tribe's cultural or religious activities. This exemption
does not include information relating to a site that is all or
part of an existing, commonly known and publicized tourist
facility or attraction.
  (12) A personnel discipline action, or materials or documents
supporting that action.
  (13) Information developed pursuant to ORS 496.004, 496.172 and
498.026 or ORS 496.192 and 564.100, regarding the habitat,
location or population of any threatened species or endangered
species.
  (14) Writings prepared by or under the direction of faculty of
public educational institutions, in connection with research,
until publicly released, copyrighted or patented.
  (15) Computer programs developed or purchased by or for any
public body for its own use. As used in this subsection, '
computer program' means a series of instructions or statements
which permit the functioning of a computer system in a manner
designed to provide storage, retrieval and manipulation of data
from such computer system, and any associated documentation and
source material that explain how to operate the computer program.
' Computer program' does not include:
  (a) The original data, including but not limited to numbers,
text, voice, graphics and images;
  (b) Analyses, compilations and other manipulated forms of the
original data produced by use of the program; or
  (c) The mathematical and statistical formulas which would be
used if the manipulated forms of the original data were to be
produced manually.
  (16) Data and information provided by participants to mediation
under ORS 36.256.
  (17) Investigatory information relating to any complaint or
charge filed under ORS chapter 654, until a final administrative
determination is made or, if a citation is issued, until an
employer receives notice of any citation.
  (18) Specific operational plans in connection with an
anticipated threat to individual or public safety for deployment
and use of personnel and equipment, prepared or used by a public
body, if public disclosure of the plans would endanger an
individual's life or physical safety or jeopardize a law
enforcement activity.
  (19)(a) Audits or audit reports required of a
telecommunications carrier. As used in this paragraph, 'audit or
audit report' means any external or internal audit or audit
report pertaining to a telecommunications carrier, as defined in
ORS 133.721, or pertaining to a corporation having an affiliated
interest, as defined in ORS 759.390, with a telecommunications
carrier that is intended to make the operations of the entity
more efficient, accurate or compliant with applicable rules,
procedures or standards, that may include self-criticism and that
has been filed by the telecommunications carrier or affiliate
under compulsion of state law. 'Audit or audit report' does not
mean an audit of a cost study that would be discoverable in a
contested case proceeding and that is not subject to a protective
order; and
  (b) Financial statements. As used in this paragraph, '
financial statement' means a financial statement of a
nonregulated corporation having an affiliated interest, as
defined in ORS 759.390, with a telecommunications carrier, as
defined in ORS 133.721.
  (20) The residence address of an elector if authorized under
ORS 247.965 and subject to ORS 247.967.
  (21) The following records, communications and information
submitted to a housing authority as defined in ORS 456.005, or to
an urban renewal agency as defined in ORS 457.010, by applicants
for and recipients of loans, grants and tax credits:
  (a) Personal and corporate financial statements and
information, including tax returns;
  (b) Credit reports;
  (c) Project appraisals;
  (d) Market studies and analyses;
  (e) Articles of incorporation, partnership agreements and
operating agreements;
  (f) Commitment letters;
  (g) Project pro forma statements;
  (h) Project cost certifications and cost data;
  (i) Audits;
  (j) Project tenant correspondence requested to be confidential;
  (k) Tenant files relating to certification; and
  (L) Housing assistance payment requests.
  (22) Records or information that, if disclosed, would allow a
person to:
  (a) Gain unauthorized access to buildings or other property;
  (b) Identify those areas of structural or operational
vulnerability that would permit unlawful disruption to, or
interference with, services; or
  (c) Disrupt, interfere with or gain unauthorized access to
public funds or to information processing, communication or
telecommunication systems, including the information contained in
the systems, that are used or operated by a public body.
  (23) Records or information that would reveal or otherwise
identify security measures, or weaknesses or potential weaknesses
in security measures, taken or recommended to be taken to
protect:
  (a) An individual;
  (b) Buildings or other property;
  (c) Information processing, communication or telecommunication
systems, including the information contained in the systems; or
  (d) Those operations of the Oregon State Lottery the security
of which are subject to study and evaluation under ORS 461.180
(6).
  (24) Personal information held by or under the direction of
officials of   { - the - }  Oregon Health and Science
University { + , Portland State University + } or the Oregon
University System about a person who has or who is interested in
donating money or property to
  { - the - }   { + Oregon Health and Science University,
Portland State + } University, the  { + Oregon University + }
System or a public university listed in ORS 352.002, if the
information is related to the family of the person, personal
assets of the person or is incidental information not related to
the donation.
  (25) The home address, professional address and telephone
number of a person who has or who is interested in donating money
or property to the Oregon University System.
  (26) Records of the name and address of a person who files a
report with or pays an assessment to a commodity commission
established under ORS 576.051 to 576.455, the Oregon Beef Council
created under ORS 577.210 or the Oregon Wheat Commission created
under ORS 578.030.
  (27) Information provided to, obtained by or used by a public
body to authorize, originate, receive or authenticate a transfer
of funds, including but not limited to a credit card number,
payment card expiration date, password, financial institution
account number and financial institution routing number.
  (28) Social Security numbers as provided in ORS 107.840.
  (29) The electronic mail address of a student who attends a
public university listed in ORS 352.002 { + , + }   { - or - }
Oregon Health and Science University { +  or Portland State
University + }.
  (30) The name, home address, professional address or location
of a person that is engaged in, or that provides goods or
services for, medical research at Oregon Health and Science
University that is conducted using animals other than rodents.
This subsection does not apply to Oregon Health and Science
University press releases, websites or other publications
circulated to the general public.
  (31) If requested by a public safety officer, as defined in ORS
181.610:
  (a) The home address and home telephone number of the public
safety officer contained in the voter registration records for
the public safety officer.
  (b) The home address and home telephone number of the public
safety officer contained in records of the Department of Public
Safety Standards and Training.
  (c) The name of the public safety officer contained in county
real property assessment or taxation records. This exemption:
  (A) Applies only to the name of the public safety officer and
any other owner of the property in connection with a specific
property identified by the officer in a request for exemption
from disclosure;
  (B) Applies only to records that may be made immediately
available to the public upon request in person, by telephone or
using the Internet;
  (C) Applies until the public safety officer requests
termination of the exemption;
  (D) Does not apply to disclosure of records among public bodies
as defined in ORS 174.109 for governmental purposes; and
  (E) May not result in liability for the county if the name of
the public safety officer is disclosed after a request for
exemption from disclosure is made under this subsection.
  (32) Unless the public records request is made by a financial
institution, as defined in ORS 706.008, consumer finance company
licensed under ORS chapter 725, mortgage banker or mortgage
broker licensed under ORS 86A.095 to 86A.198, or title company
for business purposes, records described in paragraph (a) of this
subsection, if the exemption from disclosure of the records is
sought by an individual described in paragraph (b) of this
subsection using the procedure described in paragraph (c) of this
subsection:
  (a) The home address, home or cellular telephone number or
personal electronic mail address contained in the records of any
public body that has received the request that is set forth in:
  (A) A warranty deed, deed of trust, mortgage, lien, deed of
reconveyance, release, satisfaction, substitution of trustee,
easement, dog license, marriage license or military discharge
record that is in the possession of the county clerk; or
  (B) Any public record of a public body other than the county
clerk.
  (b) The individual claiming the exemption from disclosure must
be a district attorney, a deputy district attorney, the Attorney
General or an assistant attorney general, the United States
Attorney for the District of Oregon or an assistant United States
attorney for the District of Oregon, a city attorney who engages
in the prosecution of criminal matters or a deputy city attorney
who engages in the prosecution of criminal matters.
  (c) The individual claiming the exemption from disclosure must
do so by filing the claim in writing with the public body for
which the exemption from disclosure is being claimed on a form
prescribed by the public body. Unless the claim is filed with the
county clerk, the claim form shall list the public records in the
possession of the public body to which the exemption applies. The
exemption applies until the individual claiming the exemption
requests termination of the exemption or ceases to qualify for
the exemption.
  (33) Land management plans required for voluntary stewardship
agreements entered into under ORS 541.423.
  (34) Sensitive business records or financial or commercial
information of the State Accident Insurance Fund Corporation that
is not customarily provided to business competitors. This
exemption does not:
  (a) Apply to the formulas for determining dividends to be paid
to employers insured by the State Accident Insurance Fund
Corporation;
  (b) Apply to contracts for advertising, public relations or
lobbying services or to documents related to the formation of
such contracts;
  (c) Apply to group insurance contracts or to documents relating
to the formation of such contracts, except that employer account
records shall remain exempt from disclosure as provided in ORS
192.502 (35); or
  (d) Provide the basis for opposing the discovery of documents
in litigation pursuant to the applicable rules of civil
procedure.
  (35) Records of the Department of Public Safety Standards and
Training relating to investigations conducted under ORS 181.662
or 181.878 (6), until the department issues the report described
in ORS 181.662 or 181.878.
  (36) A medical examiner's report, autopsy report or laboratory
test report ordered by a medical examiner under ORS 146.117.
  (37) Any document or other information related to an audit of a
public body, as defined in ORS 174.109, that is in the custody of
an auditor or audit organization operating under nationally
recognized government auditing standards, until the auditor or
audit organization issues a final audit report in accordance with
those standards or the audit is abandoned. This exemption does
not prohibit disclosure of a draft audit report that is provided
to the audited entity for the entity's response to the audit
findings.
  SECTION 59. ORS 192.501, as amended by section 3, chapter 455,
Oregon Laws 2005, section 7, chapter 608, Oregon Laws 2007,
section 2, chapter 687, Oregon Laws 2007, section 2, chapter 48,
Oregon Laws 2008, section 3, chapter 57, Oregon Laws 2009,
section 2, chapter 135, Oregon Laws 2009, section 4, chapter 222,
Oregon Laws 2009, section 2, chapter 769, Oregon Laws 2009,
section 15, chapter 9, Oregon Laws 2011, section 2, chapter 285,
Oregon Laws 2011, and section 69, chapter 637, Oregon Laws 2011,
is amended to read:
  192.501. The following public records are exempt from
disclosure under ORS 192.410 to 192.505 unless the public
interest requires disclosure in the particular instance:
  (1) Records of a public body pertaining to litigation to which
the public body is a party if the complaint has been filed, or if
the complaint has not been filed, if the public body shows that
such litigation is reasonably likely to occur. This exemption
does not apply to litigation which has been concluded, and
nothing in this subsection shall limit any right or opportunity
granted by discovery or deposition statutes to a party to
litigation or potential litigation.
  (2) Trade secrets. 'Trade secrets,' as used in this section,
may include, but are not limited to, any formula, plan, pattern,
process, tool, mechanism, compound, procedure, production data,
or compilation of information which is not patented, which is
known only to certain individuals within an organization and
which is used in a business it conducts, having actual or
potential commercial value, and which gives its user an
opportunity to obtain a business advantage over competitors who
do not know or use it.
  (3) Investigatory information compiled for criminal law
purposes. The record of an arrest or the report of a crime shall
be disclosed unless and only for so long as there is a clear need
to delay disclosure in the course of a specific investigation,
including the need to protect the complaining party or the
victim.  Nothing in this subsection shall limit any right
constitutionally guaranteed, or granted by statute, to disclosure
or discovery in criminal cases. For purposes of this subsection,
the record of an arrest or the report of a crime includes, but is
not limited to:
  (a) The arrested person's name, age, residence, employment,
marital status and similar biographical information;
  (b) The offense with which the arrested person is charged;
  (c) The conditions of release pursuant to ORS 135.230 to
135.290;
  (d) The identity of and biographical information concerning
both complaining party and victim;
  (e) The identity of the investigating and arresting agency and
the length of the investigation;
  (f) The circumstances of arrest, including time, place,
resistance, pursuit and weapons used; and
  (g) Such information as may be necessary to enlist public
assistance in apprehending fugitives from justice.
  (4) Test questions, scoring keys, and other data used to
administer a licensing examination, employment, academic or other
examination or testing procedure before the examination is given
and if the examination is to be used again. Records establishing
procedures for and instructing persons administering, grading or
evaluating an examination or testing procedure are included in
this exemption, to the extent that disclosure would create a risk
that the result might be affected.
  (5) Information consisting of production records, sale or
purchase records or catch records, or similar business records of
a private concern or enterprise, required by law to be submitted
to or inspected by a governmental body to allow it to determine
fees or assessments payable or to establish production quotas,
and the amounts of such fees or assessments payable or paid, to
the extent that such information is in a form which would permit
identification of the individual concern or enterprise. This
exemption does not include records submitted by long term care
facilities as defined in ORS 442.015 to the state for purposes of
reimbursement of expenses or determining fees for patient care.
Nothing in this subsection shall limit the use which can be made
of such information for regulatory purposes or its admissibility
in any enforcement proceeding.
  (6) Information relating to the appraisal of real estate prior
to its acquisition.
  (7) The names and signatures of employees who sign
authorization cards or petitions for the purpose of requesting
representation or decertification elections.
  (8) Investigatory information relating to any complaint filed
under ORS 659A.820 or 659A.825, until such time as the complaint
is resolved under ORS 659A.835, or a final order is issued under
ORS 659A.850.
  (9) Investigatory information relating to any complaint or
charge filed under ORS 243.676 and 663.180.
  (10) Records, reports and other information received or
compiled by the Director of the Department of Consumer and
Business Services under ORS 697.732.
  (11) Information concerning the location of archaeological
sites or objects as those terms are defined in ORS 358.905,
except if the governing body of an Indian tribe requests the
information and the need for the information is related to that
Indian tribe's cultural or religious activities. This exemption
does not include information relating to a site that is all or
part of an existing, commonly known and publicized tourist
facility or attraction.
  (12) A personnel discipline action, or materials or documents
supporting that action.
  (13) Information developed pursuant to ORS 496.004, 496.172 and
498.026 or ORS 496.192 and 564.100, regarding the habitat,
location or population of any threatened species or endangered
species.
  (14) Writings prepared by or under the direction of faculty of
public educational institutions, in connection with research,
until publicly released, copyrighted or patented.
  (15) Computer programs developed or purchased by or for any
public body for its own use. As used in this subsection, '
computer program' means a series of instructions or statements
which permit the functioning of a computer system in a manner
designed to provide storage, retrieval and manipulation of data
from such computer system, and any associated documentation and
source material that explain how to operate the computer program.
' Computer program' does not include:
  (a) The original data, including but not limited to numbers,
text, voice, graphics and images;
  (b) Analyses, compilations and other manipulated forms of the
original data produced by use of the program; or
  (c) The mathematical and statistical formulas which would be
used if the manipulated forms of the original data were to be
produced manually.
  (16) Data and information provided by participants to mediation
under ORS 36.256.
  (17) Investigatory information relating to any complaint or
charge filed under ORS chapter 654, until a final administrative
determination is made or, if a citation is issued, until an
employer receives notice of any citation.
  (18) Specific operational plans in connection with an
anticipated threat to individual or public safety for deployment
and use of personnel and equipment, prepared or used by a public
body, if public disclosure of the plans would endanger an
individual's life or physical safety or jeopardize a law
enforcement activity.
  (19)(a) Audits or audit reports required of a
telecommunications carrier. As used in this paragraph, 'audit or
audit report' means any external or internal audit or audit
report pertaining to a telecommunications carrier, as defined in
ORS 133.721, or pertaining to a corporation having an affiliated
interest, as defined in ORS 759.390, with a telecommunications
carrier that is intended to make the operations of the entity
more efficient, accurate or compliant with applicable rules,
procedures or standards, that may include self-criticism and that
has been filed by the telecommunications carrier or affiliate
under compulsion of state law. 'Audit or audit report' does not
mean an audit of a cost study that would be discoverable in a
contested case proceeding and that is not subject to a protective
order; and
  (b) Financial statements. As used in this paragraph, '
financial statement' means a financial statement of a
nonregulated corporation having an affiliated interest, as
defined in ORS 759.390, with a telecommunications carrier, as
defined in ORS 133.721.
  (20) The residence address of an elector if authorized under
ORS 247.965 and subject to ORS 247.967.
  (21) The following records, communications and information
submitted to a housing authority as defined in ORS 456.005, or to
an urban renewal agency as defined in ORS 457.010, by applicants
for and recipients of loans, grants and tax credits:
  (a) Personal and corporate financial statements and
information, including tax returns;
  (b) Credit reports;
  (c) Project appraisals;
  (d) Market studies and analyses;
  (e) Articles of incorporation, partnership agreements and
operating agreements;
  (f) Commitment letters;
  (g) Project pro forma statements;
  (h) Project cost certifications and cost data;
  (i) Audits;
  (j) Project tenant correspondence requested to be confidential;
  (k) Tenant files relating to certification; and
  (L) Housing assistance payment requests.
  (22) Records or information that, if disclosed, would allow a
person to:
  (a) Gain unauthorized access to buildings or other property;
  (b) Identify those areas of structural or operational
vulnerability that would permit unlawful disruption to, or
interference with, services; or
  (c) Disrupt, interfere with or gain unauthorized access to
public funds or to information processing, communication or
telecommunication systems, including the information contained in
the systems, that are used or operated by a public body.
  (23) Records or information that would reveal or otherwise
identify security measures, or weaknesses or potential weaknesses
in security measures, taken or recommended to be taken to
protect:
  (a) An individual;
  (b) Buildings or other property;
  (c) Information processing, communication or telecommunication
systems, including the information contained in the systems; or
  (d) Those operations of the Oregon State Lottery the security
of which are subject to study and evaluation under ORS 461.180
(6).
  (24) Personal information held by or under the direction of
officials of the Oregon Health and Science University { + ,
Portland State University + } or the Oregon University System
about a person who has or who is interested in donating money or
property to
  { - the - }   { + Oregon Health and Science University,
Portland State + } University, the  { + Oregon University + }
System or a public university listed in ORS 352.002, if the
information is related to the family of the person, personal

assets of the person or is incidental information not related to
the donation.
  (25) The home address, professional address and telephone
number of a person who has or who is interested in donating money
or property to the Oregon University System.
  (26) Records of the name and address of a person who files a
report with or pays an assessment to a commodity commission
established under ORS 576.051 to 576.455, the Oregon Beef Council
created under ORS 577.210 or the Oregon Wheat Commission created
under ORS 578.030.
  (27) Information provided to, obtained by or used by a public
body to authorize, originate, receive or authenticate a transfer
of funds, including but not limited to a credit card number,
payment card expiration date, password, financial institution
account number and financial institution routing number.
  (28) Social Security numbers as provided in ORS 107.840.
  (29) The electronic mail address of a student who attends a
public university listed in ORS 352.002 { + , + }   { - or - }
Oregon Health and Science University { +  or Portland State
University + }.
  (30) If requested by a public safety officer, as defined in ORS
181.610:
  (a) The home address and home telephone number of the public
safety officer contained in the voter registration records for
the public safety officer.
  (b) The home address and home telephone number of the public
safety officer contained in records of the Department of Public
Safety Standards and Training.
  (c) The name of the public safety officer contained in county
real property assessment or taxation records. This exemption:
  (A) Applies only to the name of the public safety officer and
any other owner of the property in connection with a specific
property identified by the officer in a request for exemption
from disclosure;
  (B) Applies only to records that may be made immediately
available to the public upon request in person, by telephone or
using the Internet;
  (C) Applies until the public safety officer requests
termination of the exemption;
  (D) Does not apply to disclosure of records among public bodies
as defined in ORS 174.109 for governmental purposes; and
  (E) May not result in liability for the county if the name of
the public safety officer is disclosed after a request for
exemption from disclosure is made under this subsection.
  (31) Unless the public records request is made by a financial
institution, as defined in ORS 706.008, consumer finance company
licensed under ORS chapter 725, mortgage banker or mortgage
broker licensed under ORS 86A.095 to 86A.198, or title company
for business purposes, records described in paragraph (a) of this
subsection, if the exemption from disclosure of the records is
sought by an individual described in paragraph (b) of this
subsection using the procedure described in paragraph (c) of this
subsection:
  (a) The home address, home or cellular telephone number or
personal electronic mail address contained in the records of any
public body that has received the request that is set forth in:
  (A) A warranty deed, deed of trust, mortgage, lien, deed of
reconveyance, release, satisfaction, substitution of trustee,
easement, dog license, marriage license or military discharge
record that is in the possession of the county clerk; or
  (B) Any public record of a public body other than the county
clerk.
  (b) The individual claiming the exemption from disclosure must
be a district attorney, a deputy district attorney, the Attorney
General or an assistant attorney general, the United States
Attorney for the District of Oregon or an assistant United States
attorney for the District of Oregon, a city attorney who engages
in the prosecution of criminal matters or a deputy city attorney
who engages in the prosecution of criminal matters.
  (c) The individual claiming the exemption from disclosure must
do so by filing the claim in writing with the public body for
which the exemption from disclosure is being claimed on a form
prescribed by the public body. Unless the claim is filed with the
county clerk, the claim form shall list the public records in the
possession of the public body to which the exemption applies. The
exemption applies until the individual claiming the exemption
requests termination of the exemption or ceases to qualify for
the exemption.
  (32) Land management plans required for voluntary stewardship
agreements entered into under ORS 541.423.
  (33) Sensitive business records or financial or commercial
information of the State Accident Insurance Fund Corporation that
is not customarily provided to business competitors. This
exemption does not:
  (a) Apply to the formulas for determining dividends to be paid
to employers insured by the State Accident Insurance Fund
Corporation;
  (b) Apply to contracts for advertising, public relations or
lobbying services or to documents related to the formation of
such contracts;
  (c) Apply to group insurance contracts or to documents relating
to the formation of such contracts, except that employer account
records shall remain exempt from disclosure as provided in ORS
192.502 (35); or
  (d) Provide the basis for opposing the discovery of documents
in litigation pursuant to the applicable rules of civil
procedure.
  (34) Records of the Department of Public Safety Standards and
Training relating to investigations conducted under ORS 181.662
or 181.878 (6), until the department issues the report described
in ORS 181.662 or 181.878.
  (35) A medical examiner's report, autopsy report or laboratory
test report ordered by a medical examiner under ORS 146.117.
  (36) Any document or other information related to an audit of a
public body, as defined in ORS 174.109, that is in the custody of
an auditor or audit organization operating under nationally
recognized government auditing standards, until the auditor or
audit organization issues a final audit report in accordance with
those standards or the audit is abandoned. This exemption does
not prohibit disclosure of a draft audit report that is provided
to the audited entity for the entity's response to the audit
findings.
   { +  NOTE: + } Section 60 was deleted. Subsequent sections
were not renumbered.
  SECTION 61. ORS 192.502, as amended by section 26, chapter 45,
Oregon Laws 2012, and sections 19 and 30, chapter 90, Oregon Laws
2012, is amended to read:
  192.502. The following public records are exempt from
disclosure under ORS 192.410 to 192.505:
  (1) Communications within a public body or between public
bodies of an advisory nature to the extent that they cover other
than purely factual materials and are preliminary to any final
agency determination of policy or action. This exemption shall
not apply unless the public body shows that in the particular
instance the public interest in encouraging frank communication
between officials and employees of public bodies clearly
outweighs the public interest in disclosure.
  (2) Information of a personal nature such as but not limited to
that kept in a personal, medical or similar file, if public
disclosure would constitute an unreasonable invasion of privacy,
unless the public interest by clear and convincing evidence
requires disclosure in the particular instance. The party seeking
disclosure shall have the burden of showing that public
disclosure would not constitute an unreasonable invasion of
privacy.
  (3) Public body employee or volunteer addresses, Social
Security numbers, dates of birth and telephone numbers contained
in personnel records maintained by the public body that is the
employer or the recipient of volunteer services. This exemption:
  (a) Does not apply to the addresses, dates of birth and
telephone numbers of employees or volunteers who are elected
officials, except that a judge or district attorney subject to
election may seek to exempt the judge's or district attorney's
address or telephone number, or both, under the terms of ORS
192.445;
  (b) Does not apply to employees or volunteers to the extent
that the party seeking disclosure shows by clear and convincing
evidence that the public interest requires disclosure in a
particular instance;
  (c) Does not apply to a substitute teacher as defined in ORS
342.815 when requested by a professional education association of
which the substitute teacher may be a member; and
  (d) Does not relieve a public employer of any duty under ORS
243.650 to 243.782.
  (4) Information submitted to a public body in confidence and
not otherwise required by law to be submitted, where such
information should reasonably be considered confidential, the
public body has obliged itself in good faith not to disclose the
information, and when the public interest would suffer by the
disclosure.
  (5) Information or records of the Department of Corrections,
including the State Board of Parole and Post-Prison Supervision,
to the extent that disclosure would interfere with the
rehabilitation of a person in custody of the department or
substantially prejudice or prevent the carrying out of the
functions of the department, if the public interest in
confidentiality clearly outweighs the public interest in
disclosure.
  (6) Records, reports and other information received or compiled
by the Director of the Department of Consumer and Business
Services in the administration of ORS chapters 723 and 725 not
otherwise required by law to be made public, to the extent that
the interests of lending institutions, their officers, employees
and customers in preserving the confidentiality of such
information outweighs the public interest in disclosure.
  (7) Reports made to or filed with the court under ORS 137.077
or 137.530.
  (8) Any public records or information the disclosure of which
is prohibited by federal law or regulations.
  (9)(a) Public records or information the disclosure of which is
prohibited or restricted or otherwise made confidential or
privileged under Oregon law.
  (b) Subject to ORS 192.423, paragraph (a) of this subsection
does not apply to factual information compiled in a public record
when:
  (A) The basis for the claim of exemption is ORS 40.225;
  (B) The factual information is not prohibited from disclosure
under any applicable state or federal law, regulation or court
order and is not otherwise exempt from disclosure under ORS
192.410 to 192.505;
  (C) The factual information was compiled by or at the direction
of an attorney as part of an investigation on behalf of the
public body in response to information of possible wrongdoing by
the public body;
  (D) The factual information was not compiled in preparation for
litigation, arbitration or an administrative proceeding that was
reasonably likely to be initiated or that has been initiated by
or against the public body; and
  (E) The holder of the privilege under ORS 40.225 has made or
authorized a public statement characterizing or partially
disclosing the factual information compiled by or at the
attorney's direction.
  (10) Public records or information described in this section,
furnished by the public body originally compiling, preparing or
receiving them to any other public officer or public body in
connection with performance of the duties of the recipient, if
the considerations originally giving rise to the confidential or
exempt nature of the public records or information remain
applicable.
  (11) Records of the Energy Facility Siting Council concerning
the review or approval of security programs pursuant to ORS
469.530.
  (12) Employee and retiree address, telephone number and other
nonfinancial membership records and employee financial records
maintained by the Public Employees Retirement System pursuant to
ORS chapters 238 and 238A.
  (13) Records of or submitted to the State Treasurer, the Oregon
Investment Council or the agents of the treasurer or the council
relating to active or proposed publicly traded investments under
ORS chapter 293, including but not limited to records regarding
the acquisition, exchange or liquidation of the investments. For
the purposes of this subsection:
  (a) The exemption does not apply to:
  (A) Information in investment records solely related to the
amount paid directly into an investment by, or returned from the
investment directly to, the treasurer or council; or
  (B) The identity of the entity to which the amount was paid
directly or from which the amount was received directly.
  (b) An investment in a publicly traded investment is no longer
active when acquisition, exchange or liquidation of the
investment has been concluded.
  (14)(a) Records of or submitted to the State Treasurer, the
Oregon Investment Council, the Oregon Growth Account Board or the
agents of the treasurer, council or board relating to actual or
proposed investments under ORS chapter 293 or 348 in a privately
placed investment fund or a private asset including but not
limited to records regarding the solicitation, acquisition,
deployment, exchange or liquidation of the investments including
but not limited to:
  (A) Due diligence materials that are proprietary to an
investment fund, to an asset ownership or to their respective
investment vehicles.
  (B) Financial statements of an investment fund, an asset
ownership or their respective investment vehicles.
  (C) Meeting materials of an investment fund, an asset ownership
or their respective investment vehicles.
  (D) Records containing information regarding the portfolio
positions in which an investment fund, an asset ownership or
their respective investment vehicles invest.
  (E) Capital call and distribution notices of an investment
fund, an asset ownership or their respective investment vehicles.
  (F) Investment agreements and related documents.
  (b) The exemption under this subsection does not apply to:
  (A) The name, address and vintage year of each privately placed
investment fund.
  (B) The dollar amount of the commitment made to each privately
placed investment fund since inception of the fund.
  (C) The dollar amount of cash contributions made to each
privately placed investment fund since inception of the fund.
  (D) The dollar amount, on a fiscal year-end basis, of cash
distributions received by the State Treasurer, the Oregon
Investment Council, the Oregon Growth Account Board or the agents
of the treasurer, council or board from each privately placed
investment fund.
  (E) The dollar amount, on a fiscal year-end basis, of the
remaining value of assets in a privately placed investment fund
attributable to an investment by the State Treasurer, the Oregon
Investment Council, the Oregon Growth Account Board or the agents
of the treasurer, council or board.
  (F) The net internal rate of return of each privately placed
investment fund since inception of the fund.
  (G) The investment multiple of each privately placed investment
fund since inception of the fund.
  (H) The dollar amount of the total management fees and costs
paid on an annual fiscal year-end basis to each privately placed
investment fund.
  (I) The dollar amount of cash profit received from each
privately placed investment fund on a fiscal year-end basis.
  (15) The monthly reports prepared and submitted under ORS
293.761 and 293.766 concerning the Public Employees Retirement
Fund and the Industrial Accident Fund may be uniformly treated as
exempt from disclosure for a period of up to 90 days after the
end of the calendar quarter.
  (16) Reports of unclaimed property filed by the holders of such
property to the extent permitted by ORS 98.352.
  (17)(a) The following records, communications and information
submitted to the Oregon Business Development Commission, the
Oregon Business Development Department, the State Department of
Agriculture, the Oregon Growth Account Board, the Port of
Portland or other ports as defined in ORS 777.005, or a county or
city governing body and any board, department, commission,
council or agency thereof, by applicants for investment funds,
grants, loans, services or economic development moneys, support
or assistance including, but not limited to, those described in
ORS 285A.224:
  (A) Personal financial statements.
  (B) Financial statements of applicants.
  (C) Customer lists.
  (D) Information of an applicant pertaining to litigation to
which the applicant is a party if the complaint has been filed,
or if the complaint has not been filed, if the applicant shows
that such litigation is reasonably likely to occur; this
exemption does not apply to litigation which has been concluded,
and nothing in this subparagraph shall limit any right or
opportunity granted by discovery or deposition statutes to a
party to litigation or potential litigation.
  (E) Production, sales and cost data.
  (F) Marketing strategy information that relates to applicant's
plan to address specific markets and applicant's strategy
regarding specific competitors.
  (b) The following records, communications and information
submitted to the State Department of Energy by applicants for tax
credits or for grants awarded under ORS 469B.256:
  (A) Personal financial statements.
  (B) Financial statements of applicants.
  (C) Customer lists.
  (D) Information of an applicant pertaining to litigation to
which the applicant is a party if the complaint has been filed,
or if the complaint has not been filed, if the applicant shows
that such litigation is reasonably likely to occur; this
exemption does not apply to litigation which has been concluded,
and nothing in this subparagraph shall limit any right or
opportunity granted by discovery or deposition statutes to a
party to litigation or potential litigation.
  (E) Production, sales and cost data.
  (F) Marketing strategy information that relates to applicant's
plan to address specific markets and applicant's strategy
regarding specific competitors.
  (18) Records, reports or returns submitted by private concerns
or enterprises required by law to be submitted to or inspected by
a governmental body to allow it to determine the amount of any
transient lodging tax payable and the amounts of such tax payable
or paid, to the extent that such information is in a form which
would permit identification of the individual concern or
enterprise. Nothing in this subsection shall limit the use which
can be made of such information for regulatory purposes or its
admissibility in any enforcement proceedings. The public body
shall notify the taxpayer of the delinquency immediately by
certified mail. However, in the event that the payment or
delivery of transient lodging taxes otherwise due to a public
body is delinquent by over 60 days, the public body shall
disclose, upon the request of any person, the following
information:
  (a) The identity of the individual concern or enterprise that
is delinquent over 60 days in the payment or delivery of the
taxes.
  (b) The period for which the taxes are delinquent.
  (c) The actual, or estimated, amount of the delinquency.
  (19) All information supplied by a person under ORS 151.485 for
the purpose of requesting appointed counsel, and all information
supplied to the court from whatever source for the purpose of
verifying the financial eligibility of a person pursuant to ORS
151.485.
  (20) Workers' compensation claim records of the Department of
Consumer and Business Services, except in accordance with rules
adopted by the Director of the Department of Consumer and
Business Services, in any of the following circumstances:
  (a) When necessary for insurers, self-insured employers and
third party claim administrators to process workers' compensation
claims.
  (b) When necessary for the director, other governmental
agencies of this state or the United States to carry out their
duties, functions or powers.
  (c) When the disclosure is made in such a manner that the
disclosed information cannot be used to identify any worker who
is the subject of a claim.
  (d) When a worker or the worker's representative requests
review of the worker's claim record.
  (21) Sensitive business records or financial or commercial
information of   { - the - }  Oregon Health and Science
University { +  or Portland State University + } that is not
customarily provided to business competitors.
  (22) Records of Oregon Health and Science University { +  or
Portland State University + } regarding candidates for the
position of president of the university.
  (23) The records of a library, including:
  (a) Circulation records, showing use of specific library
material by a named person;
  (b) The name of a library patron together with the address or
telephone number of the patron; and
  (c) The electronic mail address of a patron.
  (24) The following records, communications and information
obtained by the Housing and Community Services Department in
connection with the department's monitoring or administration of
financial assistance or of housing or other developments:
  (a) Personal and corporate financial statements and
information, including tax returns.
  (b) Credit reports.
  (c) Project appraisals.
  (d) Market studies and analyses.
  (e) Articles of incorporation, partnership agreements and
operating agreements.
  (f) Commitment letters.
  (g) Project pro forma statements.
  (h) Project cost certifications and cost data.
  (i) Audits.
  (j) Project tenant correspondence.
  (k) Personal information about a tenant.
  (L) Housing assistance payments.
  (25) Raster geographic information system (GIS) digital
databases, provided by private forestland owners or their
representatives, voluntarily and in confidence to the State
Forestry Department, that is not otherwise required by law to be
submitted.
  (26) Sensitive business, commercial or financial information
furnished to or developed by a public body engaged in the
business of providing electricity or electricity services, if the
information is directly related to a transaction described in ORS
261.348, or if the information is directly related to a bid,
proposal or negotiations for the sale or purchase of electricity
or electricity services, and disclosure of the information would
cause a competitive disadvantage for the public body or its
retail electricity customers. This subsection does not apply to
cost-of-service studies used in the development or review of
generally applicable rate schedules.
  (27) Sensitive business, commercial or financial information
furnished to or developed by the City of Klamath Falls, acting
solely in connection with the ownership and operation of the
Klamath Cogeneration Project, if the information is directly
related to a transaction described in ORS 225.085 and disclosure
of the information would cause a competitive disadvantage for the
Klamath Cogeneration Project. This subsection does not apply to
cost-of-service studies used in the development or review of
generally applicable rate schedules.
  (28) Personally identifiable information about customers of a
municipal electric utility or a people's utility district or the
names, dates of birth, driver license numbers, telephone numbers,
electronic mail addresses or Social Security numbers of customers
who receive water, sewer or storm drain services from a public
body as defined in ORS 174.109. The utility or district may
release personally identifiable information about a customer, and
a public body providing water, sewer or storm drain services may
release the name, date of birth, driver license number, telephone
number, electronic mail address or Social Security number of a
customer, if the customer consents in writing or electronically,
if the disclosure is necessary for the utility, district or other
public body to render services to the customer, if the disclosure
is required pursuant to a court order or if the disclosure is
otherwise required by federal or state law. The utility, district
or other public body may charge as appropriate for the costs of
providing such information. The utility, district or other public
body may make customer records available to third party credit
agencies on a regular basis in connection with the establishment
and management of customer accounts or in the event such accounts
are delinquent.
  (29) A record of the street and number of an employee's address
submitted to a special district to obtain assistance in promoting
an alternative to single occupant motor vehicle transportation.
  (30) Sensitive business records, capital development plans or
financial or commercial information of Oregon Corrections
Enterprises that is not customarily provided to business
competitors.
  (31) Documents, materials or other information submitted to the
Director of the Department of Consumer and Business Services in
confidence by a state, federal, foreign or international
regulatory or law enforcement agency or by the National
Association of Insurance Commissioners, its affiliates or
subsidiaries under ORS 86A.095 to 86A.198, 697.005 to 697.095,
697.602 to 697.842, 705.137, 717.200 to 717.320, 717.900 or
717.905, ORS chapter 59, 723, 725 or 726, the Bank Act or the
Insurance Code when:

  (a) The document, material or other information is received
upon notice or with an understanding that it is confidential or
privileged under the laws of the jurisdiction that is the source
of the document, material or other information; and
  (b) The director has obligated the Department of Consumer and
Business Services not to disclose the document, material or other
information.
  (32) A county elections security plan developed and filed under
ORS 254.074.
  (33) Information about review or approval of programs relating
to the security of:
  (a) Generation, storage or conveyance of:
  (A) Electricity;
  (B) Gas in liquefied or gaseous form;
  (C) Hazardous substances as defined in ORS 453.005 (7)(a), (b)
and (d);
  (D) Petroleum products;
  (E) Sewage; or
  (F) Water.
  (b) Telecommunication systems, including cellular, wireless or
radio systems.
  (c) Data transmissions by whatever means provided.
  (34) The information specified in ORS 25.020 (8) if the Chief
Justice of the Supreme Court designates the information as
confidential by rule under ORS 1.002.
  (35)(a) Employer account records of the State Accident
Insurance Fund Corporation.
  (b) As used in this subsection, 'employer account records '
means all records maintained in any form that are specifically
related to the account of any employer insured, previously
insured or under consideration to be insured by the State
Accident Insurance Fund Corporation and any information obtained
or developed by the corporation in connection with providing,
offering to provide or declining to provide insurance to a
specific employer. 'Employer account records' includes, but is
not limited to, an employer's payroll records, premium payment
history, payroll classifications, employee names and
identification information, experience modification factors, loss
experience and dividend payment history.
  (c) The exemption provided by this subsection may not serve as
the basis for opposition to the discovery documents in litigation
pursuant to applicable rules of civil procedure.
  (36)(a) Claimant files of the State Accident Insurance Fund
Corporation.
  (b) As used in this subsection, 'claimant files' includes, but
is not limited to, all records held by the corporation pertaining
to a person who has made a claim, as defined in ORS 656.005, and
all records pertaining to such a claim.
  (c) The exemption provided by this subsection may not serve as
the basis for opposition to the discovery documents in litigation
pursuant to applicable rules of civil procedure.
  (37) Except as authorized by ORS 408.425, records that certify
or verify an individual's discharge or other separation from
military service.
  (38) Records of or submitted to a domestic violence service or
resource center that relate to the name or personal information
of an individual who visits a center for service, including the
date of service, the type of service received, referrals or
contact information or personal information of a family member of
the individual. As used in this subsection, 'domestic violence
service or resource center' means an entity, the primary purpose
of which is to assist persons affected by domestic or sexual
violence by providing referrals, resource information or other
assistance specifically of benefit to domestic or sexual violence
victims.
  SECTION 62. ORS 192.690 is amended to read:
  192.690. (1) ORS 192.610 to 192.690 do not apply to { + :
  (a) + } The deliberations of the Oregon Health Authority
conducted under ORS 161.315 to 161.351  { - , - }  { + ;
  (b) + } The Psychiatric Security Review Board  { - , - }  { + ;
  (c) + } The State Board of Parole and Post-Prison Supervision
 { - , - }  { + ;
  (d) + } State agencies conducting hearings on contested cases
in accordance with the provisions of ORS chapter 183  { - , - }
 { + ;
  (e) + } The review by the Workers' Compensation Board or the
Employment Appeals Board of   { - similar - }  { +  state
agency + } hearings  { +  conducted + } on contested cases
 { - , - }  { + ;
  (f) + } Meetings of the state lawyers assistance committee
operating under the provisions of ORS 9.568, meetings of the
personal and practice management assistance committees operating
under the provisions of ORS 9.568  { - , - }  { + ;
  (g) + } The county multidisciplinary child abuse teams required
to review child abuse cases in accordance with the provisions of
ORS 418.747  { - , - }  { + ;
  (h) + } The child fatality review teams required to review
child fatalities in accordance with the provisions of ORS 418.785
 { - , - }  { +  or to + } the peer review committees in
accordance with the provisions of ORS 441.055  { - , - }  { + ;
  (i) + } Mediation conducted under ORS 36.250 to 36.270
 { - , - }  { + ;
  (j) + } Any judicial proceeding  { - , - }  { + ;
  (k) + } Meetings of the   { - Oregon Health and Science
University - }  { +  Portland Metropolitan Universities + } Board
of Directors or its designated committee regarding candidates for
the position of president of   { - the - }  { +  Oregon Health
and Science University or president of Portland State + }
University or regarding sensitive business, financial or
commercial matters of   { - the - }  { +  each + } university not
customarily provided to competitors related to financings,
mergers, acquisitions or joint ventures or related to the sale or
other disposition of, or substantial change in use of,
significant real or personal property, or related to health
system strategies  { - , or to - }  { + ; or
  (L) + } Oregon Health and Science University { +  or Portland
State University + } faculty or staff committee meetings.
  (2) Because of the grave risk to public health and safety that
would be posed by misappropriation or misapplication of
information considered during such review and approval, ORS
192.610 to 192.690   { - shall - }  { +  do + } not apply to
review and approval of security programs by the Energy Facility
Siting Council pursuant to ORS 469.530.
  SECTION 63. ORS 238.005, as amended by section 30, chapter 54,
Oregon Laws 2012, is amended to read:
  238.005. For purposes of this chapter:
  (1) 'Active member' means a member who is presently employed by
a participating public employer in a qualifying position and who
has completed the six-month period of service required by ORS
238.015.
  (2) 'Annuity' means payments for life derived from
contributions made by a member as provided in this chapter.
  (3) 'Board' means the Public Employees Retirement Board.
  (4) 'Calendar year' means 12 calendar months commencing on
January 1 and ending on December 31 following.
  (5) 'Continuous service' means service not interrupted for more
than five years, except that such continuous service shall be
computed without regard to interruptions in the case of:
  (a) An employee who had returned to the service of the employer
as of January 1, 1945, and who remained in that employment until
having established membership in the Public Employees Retirement
System.
  (b) An employee who was in the armed services on January 1,
1945, and returned to the service of the employer within one year
of the date of being otherwise than dishonorably discharged and
remained in that employment until having established membership
in the Public Employees Retirement System.
  (6) 'Creditable service' means any period of time during which
an active member is being paid a salary by a participating public
employer and for which benefits under this chapter are funded by
employer contributions and earnings on the fund. For purposes of
computing years of 'creditable service,' full months and major
fractions of a month shall be considered to be one-twelfth of a
year and shall be added to all full years.  ' Creditable service'
includes all retirement credit received by a member.
  (7) 'Earliest service retirement age' means the age attained by
a member when the member could first make application for
retirement under the provisions of ORS 238.280.
  (8) 'Employee' includes, in addition to employees, public
officers, but does not include:
  (a) Persons engaged as independent contractors.
  (b) Seasonal, emergency or casual workers whose periods of
employment with any public employer or public employers do not
total 600 hours in any calendar year.
  (c) Persons, other than workers in the Oregon Industries for
the Blind under ORS 346.190, provided sheltered employment or
made-work by a public employer in an employment or industries
program maintained for the benefit of such persons.
  (d) Persons employed and paid from federal funds received under
a federal program intended primarily to alleviate unemployment.
However, any such person shall be considered an ' employee' if
not otherwise excluded by paragraphs (a) to (c) of this
subsection and the public employer elects to have the person so
considered by an irrevocable written notice to the board.
  (e) Persons who are employees of a railroad, as defined in ORS
824.020, and who, as such employees, are included in a retirement
plan under federal railroad retirement statutes. This paragraph
shall be deemed to have been in effect since the inception of the
system.
  (9) 'Final average salary' means whichever of the following is
greater:
  (a) The average salary per calendar year paid by one or more
participating public employers to an employee who is an active
member of the system in three of the calendar years of membership
before the effective date of retirement of the employee, in which
three years the employee was paid the highest salary. The three
calendar years in which the employee was paid the largest total
salary may include calendar years in which the employee was
employed for less than a full calendar year. If the number of
calendar years of active membership before the effective date of
retirement of the employee is three or fewer, the final average
salary for the employee is the average salary per calendar year
paid by one or more participating public employers to the
employee in all of those years, without regard to whether the
employee was employed for the full calendar year.
  (b) One-third of the total salary paid by a participating
public employer to an employee who is an active member of the
system in the last 36 calendar months of active membership before
the effective date of retirement of the employee.
  (10) 'Firefighter' does not include a volunteer firefighter,
but does include:
  (a) The State Fire Marshal, the chief deputy fire marshal and
deputy state fire marshals; and
  (b) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.

  (11) 'Fiscal year' means 12 calendar months commencing on July
1 and ending on June 30 following.
  (12) 'Fund' means the Public Employees Retirement Fund.
  (13) 'Inactive member' means a member who is not employed in a
qualifying position, whose membership has not been terminated in
the manner described by ORS 238.095 and who is not retired for
service or disability.
  (14) 'Institution of higher education' means a public
university listed in ORS 352.002, the Oregon Health and Science
University and a community college, as defined in ORS 341.005.
  (15) 'Member' means a person who has established membership in
the system and whose membership has not been terminated as
described in ORS 238.095. 'Member' includes active, inactive and
retired members.
  (16) 'Member account' means the regular account and the
variable account.
  (17) 'Normal retirement age' means:
  (a) For a person who establishes membership in the system
before January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 58 years of age if the employee retires at that
age as other than a police officer or firefighter.
  (b) For a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 60 years of age if the employee retires at that
age as other than a police officer or firefighter.
  (18) 'Pension' means annual payments for life derived from
contributions by one or more public employers.
  (19) 'Police officer' includes:
  (a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions whose duties, as assigned
by the Director of the Department of Corrections, include the
custody of persons committed to the custody of or transferred to
the Department of Corrections and employees of the Department of
Corrections who were classified as police officers on or before
July 27, 1989, whether or not such classification was authorized
by law.
  (b) Employees of the Department of State Police who are
classified as police officers by the Superintendent of State
Police.
  (c) Employees of the Oregon Liquor Control Commission who are
classified as liquor enforcement inspectors by the administrator
of the commission.
  (d) Sheriffs and those deputy sheriffs or other employees of a
sheriff whose duties, as classified by the sheriff, are the
regular duties of police officers or corrections officers.
  (e) Police chiefs and police personnel of a city who are
classified as police officers by the council or other governing
body of the city.
  (f) Police officers who are commissioned by a university under
ORS 352.383 and who are classified as police officers by the
university.
  (g) Parole and probation officers employed by the Department of
Corrections, parole and probation officers who are transferred to
county employment under ORS 423.549 and adult parole and
probation officers, as defined in ORS 181.610, who are classified
as police officers for the purposes of this chapter by the county
governing body. If a county classifies adult parole and probation
officers as police officers for the purposes of this chapter, and
the employees so classified are represented by a labor
organization, any proposal by the county to change that
classification or to cease to classify adult parole and probation
officers as police officers for the purposes of this chapter is a
mandatory subject of bargaining.
  (h) Police officers appointed under ORS 276.021 or 276.023.
  (i) Employees of the Port of Portland who are classified as
airport police by the Board of Commissioners of the Port of
Portland.
  (j) Employees of the State Department of Agriculture who are
classified as livestock police officers by the Director of
Agriculture.
  (k) Employees of the Department of Public Safety Standards and
Training who are classified by the department as other than
secretarial or clerical personnel.
  (L) Investigators of the Criminal Justice Division of the
Department of Justice.
  (m) Corrections officers as defined in ORS 181.610.
  (n) Employees of the Oregon State Lottery Commission who are
classified by the Director of the Oregon State Lottery as
enforcement agents pursuant to ORS 461.110.
  (o) The Director of the Department of Corrections.
  (p) An employee who for seven consecutive years has been
classified as a police officer as defined by this section, and
who is employed or transferred by the Department of Corrections
to fill a position designated by the Director of the Department
of Corrections as being eligible for police officer status.
  (q) An employee of the Department of Corrections classified as
a police officer on or prior to July 27, 1989, whether or not
that classification was authorized by law, as long as the
employee remains in the position held on July 27, 1989. The
initial classification of an employee under a system implemented
pursuant to ORS 240.190 does not affect police officer status.
  (r) Employees of a school district who are appointed and duly
sworn members of a law enforcement agency of the district as
provided in ORS 332.531 or otherwise employed full-time as police
officers commissioned by the district.
  (s) Employees at youth correction facilities and juvenile
detention facilities under ORS 419A.050, 419A.052 and 420.005 to
420.915 who are required to hold valid Oregon teaching licenses
and who have supervisory, control or teaching responsibilities
over juveniles committed to the custody of the Department of
Corrections or the Oregon Youth Authority.
  (t) Employees at youth correction facilities as defined in ORS
420.005 whose primary job description involves the custody,
control, treatment, investigation or supervision of juveniles
placed in such facilities.
  (u) Employees of the Oregon Youth Authority who are classified
as juvenile parole and probation officers.
  (20) 'Prior service credit' means credit provided under ORS
238.442 or under ORS 238.225 (2) to (6) (1999 Edition).
  (21) 'Public employer' means the state, one of its agencies,
any city, county, or municipal or public corporation, any
political subdivision of the state or any instrumentality
thereof, or an agency created by one or more such governmental
organizations to provide governmental services. For purposes of
this chapter, such agency created by one or more governmental
organizations is a governmental instrumentality and a legal
entity with power to enter into contracts, hold property and sue
and be sued.
  (22) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an employee performs
600 or more hours of service in a calendar year, excluding any
service in a job for which a participating public employer does
not provide benefits under this chapter pursuant to an
application made under ORS 238.035.
  (23) 'Regular account' means the account established for each
active and inactive member under ORS 238.250.
  (24) 'Retired member' means a member who is retired for service
or disability.
  (25) 'Retirement credit' means a period of time that is treated
as creditable service for the purposes of this chapter.
  (26)(a) 'Salary' means the remuneration paid an employee in
cash out of the funds of a public employer in return for services
to the employer, plus the monetary value, as determined by the
Public Employees Retirement Board, of whatever living quarters,
board, lodging, fuel, laundry and other advantages the employer
furnishes the employee in return for services.
  (b) 'Salary' includes but is not limited to:
  (A) Payments of employee and employer money into a deferred
compensation plan, which are deemed salary paid in each month of
deferral;
  (B) The amount of participation in a tax-sheltered or deferred
annuity, which is deemed salary paid in each month of
participation;
  (C) Retroactive payments described in ORS 238.008; and
  (D) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
  (c) 'Salary' or 'other advantages' does not include:
  (A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer;
  (B) Payments for insurance coverage by an employer on behalf of
employee or employee and dependents, for which the employee has
no cash option;
  (C) Payments made on account of an employee's death;
  (D) Any lump sum payment for accumulated unused sick leave;
  (E) Any accelerated payment of an employment contract for a
future period or an advance against future wages;
  (F) Any retirement incentive, retirement severance pay,
retirement bonus or retirement gratuitous payment;
  (G) Payments for periods of leave of absence after the date the
employer and employee have agreed that no future services
qualifying pursuant to ORS 238.015 (3) will be performed, except
for sick leave and vacation;
  (H) Payments for instructional services rendered to public
universities of the Oregon University System { + , Portland State
University + } or   { - the - }  Oregon Health and Science
University when such services are in excess of full-time
employment subject to this chapter. A person employed under a
contract for less than 12 months is subject to this subparagraph
only for the months to which the contract pertains; or
  (I) Payments made by an employer for insurance coverage
provided to a domestic partner of an employee.
  (27) 'School year' means the period beginning July 1 and ending
June 30 next following.
  (28) 'System' means the Public Employees Retirement System.
  (29) 'Variable account' means the account established for a
member who participates in the Variable Annuity Account under ORS
238.260.
  (30) 'Vested' means being an active member of the system in
each of five calendar years.
  (31) 'Volunteer firefighter' means a firefighter whose position
normally requires less than 600 hours of service per year.
  SECTION 64. ORS 238A.005, as amended by section 1, chapter 31,
Oregon Laws 2012, is amended to read:
  238A.005. For the purposes of this chapter:
  (1) 'Active member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan who is actively employed in a qualifying
position.
  (2) 'Actuarial equivalent' means a payment or series of
payments having the same value as the payment or series of
payments replaced, computed on the basis of interest rate and
mortality assumptions adopted by the board.
  (3) 'Board' means the Public Employees Retirement Board.
  (4) 'Eligible employee' means a person who performs services
for a participating public employer, including elected officials
other than judges. 'Eligible employee' does not include:
  (a) Persons engaged as independent contractors;
  (b) Aliens working under a training or educational visa;
  (c) Persons, other than workers in the Industries for the Blind
Program under ORS 346.190, provided sheltered employment or
make-work by a public employer;
  (d) Persons categorized by a participating public employer as
student employees;
  (e) Any person who is an inmate of a state institution;
  (f) Employees of foreign trade offices of the Oregon Business
Development Department who live and perform services in foreign
countries under the provisions of ORS 285A.075 (1)(g);
  (g) An employee actively participating in an alternative
retirement program established under ORS 353.250 or an optional
retirement plan established under ORS 341.551;
  (h) Employees of the Oregon University System who are actively
participating in an optional retirement plan offered under ORS
243.800;
  (i) Any employee who belongs to a class of employees that was
not eligible on August 28, 2003, for membership in the system
under the provisions of ORS chapter 238 or other law;
  (j) Any person who belongs to a class of employees who are not
eligible to become members of the Oregon Public Service
Retirement Plan under the provisions of ORS 238A.070 (2);
  (k) Any person who is retired under ORS 238A.100 to 238A.245 or
ORS chapter 238 and who continues to receive retirement benefits
while employed; and
  (L) Judges.
  (5) 'Firefighter' means:
  (a) A person employed by a local government, as defined in ORS
174.116, whose primary job duties include the fighting of fires;
  (b) The State Fire Marshal, the chief deputy state fire marshal
and deputy state fire marshals; and
  (c) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
  (6) 'Fund' means the Public Employees Retirement Fund.
  (7)(a) 'Hour of service' means:
  (A) An hour for which an eligible employee is directly or
indirectly paid or entitled to payment by a participating public
employer for performance of duties in a qualifying position; and
  (B) An hour of vacation, holiday, illness, incapacity, jury
duty, military duty or authorized leave during which an employee
does not perform duties but for which the employee is directly or
indirectly paid or entitled to payment by a participating public
employer for services in a qualifying position, as long as the
hour is within the number of hours regularly scheduled for the
performance of duties during the period of vacation, holiday,
illness, incapacity, jury duty, military duty or authorized
leave.
  (b) 'Hour of service' does not include any hour for which
payment is made or due under a plan maintained solely for the
purpose of complying with applicable workers' compensation laws
or unemployment compensation laws.
  (8) 'Inactive member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan whose membership has not been terminated, who is
not a retired member and who is not employed in a qualifying
position.
  (9) 'Individual account program' means the defined contribution
individual account program of the Oregon Public Service
Retirement Plan established under ORS 238A.025.
  (10) 'Institution of higher education' means a public
university listed in ORS 352.002, the Oregon Health and Science
University or a community college, as defined in ORS 341.005.

  (11) 'Member' means an eligible employee who has established
membership in the pension program or the individual account
program of the Oregon Public Service Retirement Plan and whose
membership has not been terminated under ORS 238A.110 or
238A.310.
  (12) 'Participating public employer' means a public employer as
defined in ORS 238.005 that provides retirement benefits for
employees of the public employer under the system.
  (13) 'Pension program' means the defined benefit pension
program of the Oregon Public Service Retirement Plan established
under ORS 238A.025.
  (14) 'Police officer' means a police officer as described in
ORS 238.005.
  (15) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an eligible employee
performs 600 or more hours of service in a calendar year,
excluding any service in a job for which benefits are not
provided under the Oregon Public Service Retirement Plan pursuant
to ORS 238A.070 (2).
  (16) 'Retired member' means a pension program member who is
receiving a pension as provided in ORS 238A.180 to 238A.195.
  (17)(a) 'Salary' means the remuneration paid to an active
member in return for services to the participating public
employer, including remuneration in the form of living quarters,
board or other items of value, to the extent the remuneration is
includable in the employee's taxable income under Oregon law.
Salary includes the additional amounts specified in paragraph (b)
of this subsection, but does not include the amounts specified in
paragraph (c) of this subsection, regardless of whether those
amounts are includable in taxable income.
  (b) 'Salary' includes the following amounts:
  (A) Payments of employee and employer money into a deferred
compensation plan that are made at the election of the employee.
  (B) Contributions to a tax-sheltered or deferred annuity that
are made at the election of the employee.
  (C) Any amount that is contributed to a cafeteria plan or
qualified transportation fringe benefit plan by the employer at
the election of the employee and that is not includable in the
taxable income of the employee by reason of 26 U.S.C. 125 or
132(f)(4), as in effect on December 31, 2011.
  (D) Any amount that is contributed to a cash or deferred
arrangement by the employer at the election of the employee and
that is not included in the taxable income of the employee by
reason of 26 U.S.C. 402(e)(3), as in effect on December 31, 2011.
  (E) Retroactive payments described in ORS 238.008.
  (F) The amount of an employee contribution to the individual
account program that is paid by the employer and deducted from
the compensation of the employee, as provided under ORS 238A.335
(1) and (2)(a).
  (G) The amount of an employee contribution to the individual
account program that is not paid by the employer under ORS
238A.335.
  (H) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
  (c) 'Salary' does not include the following amounts:
  (A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer.
  (B) Payments made on account of an employee's death.
  (C) Any lump sum payment for accumulated unused sick leave,
vacation leave or other paid leave.
  (D) Any severance payment, accelerated payment of an employment
contract for a future period or advance against future wages.
  (E) Any retirement incentive, retirement bonus or retirement
gratuitous payment.

  (F) Payment for a leave of absence after the date the employer
and employee have agreed that no future services in a qualifying
position will be performed.
  (G) Payments for instructional services rendered to public
universities of the Oregon University System { + , Portland State
University + } or   { - the - }  Oregon Health and Science
University when those services are in excess of full-time
employment subject to this chapter. A person employed under a
contract for less than 12 months is subject to this subparagraph
only for the months covered by the contract.
  (H) The amount of an employee contribution to the individual
account program that is paid by the employer and is not deducted
from the compensation of the employee, as provided under ORS
238A.335 (1) and (2)(b).
  (I) Any amount in excess of $200,000 for a calendar year. If
any period over which salary is determined is less than 12
months, the $200,000 limitation for that period shall be
multiplied by a fraction, the numerator of which is the number of
months in the determination period and the denominator of which
is 12. The board shall adopt rules adjusting this dollar limit to
incorporate cost-of-living adjustments authorized by the Internal
Revenue Service.
  (18) 'System' means the Public Employees Retirement System.
  SECTION 65. ORS 243.107 is amended to read:
  243.107. A person employed by a public university listed in ORS
352.002 { + , + }   { - or the - }  Oregon Health and Science
University  { + or Portland State University + } may be
considered an eligible employee for participation in one of the
group benefit plans described in ORS 243.135 if the State Board
of Higher Education  { - , or the Oregon Health and Science
University - }  { +  or the Portland Metropolitan
Universities + } Board of Directors   { - for Oregon Health and
Science University employees, - }  determines that funds are
available therefor and if:
  (1) Notwithstanding ORS 243.105 (4)(b)(F), the person is a
student enrolled in an institution of higher education
 { + described in this section + } and is employed as a graduate
teaching assistant, graduate research assistant or a fellow at
the institution and elects to participate; or
  (2) Notwithstanding ORS 243.105 (4)(b)(B) or (C), the person is
employed on a less than half-time basis in an unclassified
instructional or research support capacity and elects to
participate.
  SECTION 66. ORS 243.820 is amended to read:
  243.820. (1) In order to obtain the advantages of 26 U.S.C.
403(b), or any equivalent provision of federal law, an employer
may agree with an employee who performs services for an
educational institution that:
  (a) The employee's salary will be reduced monthly by a stated
amount, or the employee will forgo monthly a salary increase of a
stated amount; and
  (b) On behalf of the employee, the employer shall contribute
monthly an amount equal to the stated amount determined under
paragraph (a) of this subsection as premiums for an annuity
contract or to a custodial account for investment in the stock of
regulated investment companies as defined in 26 U.S.C.
403(b)(7)(C). The amount contributed by the employer under this
subsection may not exceed the stated amount.
  (2) Notwithstanding any other provision of law, pursuant to an
agreement under subsection (1) of this section, the stated
amounts shall be forwarded by the employer as annuity premiums to
the company or association with which it has entered into an
annuity contract or to the regulated investment company or its
transfer agent for the benefit of the employee.
  (3) An employer may make nonelective employer contributions on
behalf of an employee who performs services for an educational
institution as premiums for an annuity contract, or to a
custodial account for investment in the stock of regulated
investment companies as defined in 26 U.S.C. 403(b)(7)(C), for
the purpose of obtaining the advantages of 26 U.S.C. 403(b) or
any equivalent provision of federal law. Employer contributions
under this subsection are in addition to any employee
contributions under subsection (1) of this section.
  (4) As used in this section:
  (a) 'Educational institution' means an educational institution
that normally maintains a regular faculty and curriculum and
normally has a regularly organized body of students in attendance
at the place where its educational activities are carried on or
an education service district.
  (b) 'Employer' means the State Board of Higher Education, any
other state agency, a community college district, a school
district,  { + Portland State University, + }   { - the - }
Oregon Health and Science University or an education service
district employing an individual who performs services for an
educational institution.
  SECTION 67. ORS 243.910 is amended to read:
  243.910. As used in ORS 243.910 to 243.945:
  (1) 'Board' means { + :
  (a) + } The State Board of Higher Education for all public
universities listed in ORS 352.002  { - , and for the Oregon
Health and Science University means the Oregon Health and Science
University Board of Directors. - }  { + ; and
  (b) The Portland Metropolitan Universities Board of Directors
for Oregon Health and Science University and Portland State
University. + }
  (2) 'Employees' means the persons appointed or employed by or
under the authority of the board who hold academic rank as
determined by the board.
  (3) 'System' means the Public Employees Retirement System
established by ORS 238.600.
  SECTION 68. ORS 244.050, as amended by section 9, chapter 90,
Oregon Laws 2012, is amended to read:
  244.050. (1) On or before April 15 of each year the following
persons shall file with the Oregon Government Ethics Commission a
verified statement of economic interest as required under this
chapter:
  (a) The Governor, Secretary of State, State Treasurer, Attorney
General, Commissioner of the Bureau of Labor and Industries,
district attorneys and members of the Legislative Assembly.
  (b) Any judicial officer, including justices of the peace and
municipal judges, except any pro tem judicial officer who does
not otherwise serve as a judicial officer.
  (c) Any candidate for a public office designated in paragraph
(a) or (b) of this subsection.
  (d) The Deputy Attorney General.
  (e) The Legislative Administrator, the Legislative Counsel, the
Legislative Fiscal Officer, the Secretary of the Senate and the
Chief Clerk of the House of Representatives.
  (f) The Chancellor and Vice Chancellors of the Oregon
University System and the president and vice presidents, or their
administrative equivalents, in each public university listed in
ORS 352.002.
  (g) The following state officers:
  (A) Adjutant General.
  (B) Director of Agriculture.
  (C) Manager of State Accident Insurance Fund Corporation.
  (D) Water Resources Director.
  (E) Director of Department of Environmental Quality.
  (F) Director of Oregon Department of Administrative Services.
  (G) State Fish and Wildlife Director.
  (H) State Forester.
  (I) State Geologist.
  (J) Director of Human Services.
  (K) Director of the Department of Consumer and Business
Services.
  (L) Director of the Department of State Lands.
  (M) State Librarian.
  (N) Administrator of Oregon Liquor Control Commission.
  (O) Superintendent of State Police.
  (P) Director of the Public Employees Retirement System.
  (Q) Director of Department of Revenue.
  (R) Director of Transportation.
  (S) Public Utility Commissioner.
  (T) Director of Veterans' Affairs.
  (U) Executive director of Oregon Government Ethics Commission.
  (V) Director of the State Department of Energy.
  (W) Director and each assistant director of the Oregon State
Lottery.
  (X) Director of the Department of Corrections.
  (Y) Director of the Oregon Department of Aviation.
  (Z) Executive director of the Oregon Criminal Justice
Commission.
  (AA) Director of the Oregon Business Development Department.
  (BB) Director of the Office of Emergency Management.
  (CC) Director of the Employment Department.
  (DD) Chief of staff for the Governor.
  (EE) Administrator of the Office for Oregon Health Policy and
Research.
  (FF) Director of the Housing and Community Services Department.
  (GG) State Court Administrator.
  (HH) Director of the Department of Land Conservation and
Development.
  (II) Board chairperson of the Land Use Board of Appeals.
  (JJ) State Marine Director.
  (KK) Executive director of the Oregon Racing Commission.
  (LL) State Parks and Recreation Director.
  (MM) Public defense services executive director.
  (NN) Chairperson of the Public Employees' Benefit Board.
  (OO) Director of the Department of Public Safety Standards and
Training.
  (PP) Chairperson of the Oregon Student Access Commission.
  (QQ) Executive director of the Oregon Watershed Enhancement
Board.
  (RR) Director of the Oregon Youth Authority.
  (SS) Director of the Oregon Health Authority.
  (TT) Deputy Superintendent of Public Instruction.
  (h) Any assistant in the Governor's office other than personal
secretaries and clerical personnel.
  (i) Every elected city or county official.
  (j) Every member of a city or county planning, zoning or
development commission.
  (k) The chief executive officer of a city or county who
performs the duties of manager or principal administrator of the
city or county.
  (L) Members of local government boundary commissions formed
under ORS 199.410 to 199.519.
  (m) Every member of a governing body of a metropolitan service
district and the executive officer thereof.
  (n) Each member of the board of directors of the State Accident
Insurance Fund Corporation.
  (o) The chief administrative officer and the financial officer
of each common and union high school district, education service
district and community college district.
  (p) Every member of the following state boards and commissions:
  (A) Board of Geologic and Mineral Industries.
  (B) Oregon Business Development Commission.
  (C) State Board of Education.
  (D) Environmental Quality Commission.
  (E) Fish and Wildlife Commission of the State of Oregon.
  (F) State Board of Forestry.
  (G) Oregon Government Ethics Commission.
  (H) Oregon Health Policy Board.
  (I) State Board of Higher Education.
  (J) Oregon Investment Council.
  (K) Land Conservation and Development Commission.
  (L) Oregon Liquor Control Commission.
  (M) Oregon Short Term Fund Board.
  (N) State Marine Board.
  (O) Mass transit district boards.
  (P) Energy Facility Siting Council.
  (Q) Board of Commissioners of the Port of Portland.
  (R) Employment Relations Board.
  (S) Public Employees Retirement Board.
  (T) Oregon Racing Commission.
  (U) Oregon Transportation Commission.
  (V) Wage and Hour Commission.
  (W) Water Resources Commission.
  (X) Workers' Compensation Board.
  (Y) Oregon Facilities Authority.
  (Z) Oregon State Lottery Commission.
  (AA) Pacific Northwest Electric Power and Conservation Planning
Council.
  (BB) Columbia River Gorge Commission.
  (CC)   { - Oregon Health and Science University - }  { +
Portland Metropolitan Universities + } Board of Directors.
  (DD) Capitol Planning Commission.
  (EE) Higher Education Coordinating Commission.
  (FF) Oregon Growth Board.
  (q) The following officers of the State Treasurer:
  (A) Deputy State Treasurer.
  (B) Chief of staff for the office of the State Treasurer.
  (C) Director of the Investment Division.
  (r) Every member of the board of commissioners of a port
governed by ORS 777.005 to 777.725 or 777.915 to 777.953.
  (s) Every member of the board of directors of an authority
created under ORS 441.525 to 441.595.
  (2) By April 15 next after the date an appointment takes
effect, every appointed public official on a board or commission
listed in subsection (1) of this section shall file with the
Oregon Government Ethics Commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (3) By April 15 next after the filing deadline for the primary
election, each candidate described in subsection (1) of this
section shall file with the commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (4) Within 30 days after the filing deadline for the general
election, each candidate described in subsection (1) of this
section who was not a candidate in the preceding primary
election, or who was nominated for public office described in
subsection (1) of this section at the preceding primary election
by write-in votes, shall file with the commission a statement of
economic interest as required under ORS 244.060, 244.070 and
244.090.
  (5) Subsections (1) to (4) of this section apply only to
persons who are incumbent, elected or appointed public officials
as of April 15 and to persons who are candidates on April 15.
Subsections (1) to (4) of this section also apply to persons who
do not become candidates until 30 days after the filing deadline
for the statewide general election.
  (6) If a statement required to be filed under this section has
not been received by the commission within five days after the
date the statement is due, the commission shall notify the public
official or candidate and give the public official or candidate
not less than 15 days to comply with the requirements of this
section. If the public official or candidate fails to comply by
the date set by the commission, the commission may impose a civil
penalty as provided in ORS 244.350.
  SECTION 69. ORS 244.050, as amended by sections 9 and 29,
chapter 90, Oregon Laws 2012, is amended to read:
  244.050. (1) On or before April 15 of each year the following
persons shall file with the Oregon Government Ethics Commission a
verified statement of economic interest as required under this
chapter:
  (a) The Governor, Secretary of State, State Treasurer, Attorney
General, Commissioner of the Bureau of Labor and Industries,
district attorneys and members of the Legislative Assembly.
  (b) Any judicial officer, including justices of the peace and
municipal judges, except any pro tem judicial officer who does
not otherwise serve as a judicial officer.
  (c) Any candidate for a public office designated in paragraph
(a) or (b) of this subsection.
  (d) The Deputy Attorney General.
  (e) The Legislative Administrator, the Legislative Counsel, the
Legislative Fiscal Officer, the Secretary of the Senate and the
Chief Clerk of the House of Representatives.
  (f) The Chancellor and Vice Chancellors of the Oregon
University System and the president and vice presidents, or their
administrative equivalents, in each public university listed in
ORS 352.002.
  (g) The following state officers:
  (A) Adjutant General.
  (B) Director of Agriculture.
  (C) Manager of State Accident Insurance Fund Corporation.
  (D) Water Resources Director.
  (E) Director of Department of Environmental Quality.
  (F) Director of Oregon Department of Administrative Services.
  (G) State Fish and Wildlife Director.
  (H) State Forester.
  (I) State Geologist.
  (J) Director of Human Services.
  (K) Director of the Department of Consumer and Business
Services.
  (L) Director of the Department of State Lands.
  (M) State Librarian.
  (N) Administrator of Oregon Liquor Control Commission.
  (O) Superintendent of State Police.
  (P) Director of the Public Employees Retirement System.
  (Q) Director of Department of Revenue.
  (R) Director of Transportation.
  (S) Public Utility Commissioner.
  (T) Director of Veterans' Affairs.
  (U) Executive director of Oregon Government Ethics Commission.
  (V) Director of the State Department of Energy.
  (W) Director and each assistant director of the Oregon State
Lottery.
  (X) Director of the Department of Corrections.
  (Y) Director of the Oregon Department of Aviation.
  (Z) Executive director of the Oregon Criminal Justice
Commission.
  (AA) Director of the Oregon Business Development Department.
  (BB) Director of the Office of Emergency Management.
  (CC) Director of the Employment Department.
  (DD) Chief of staff for the Governor.
  (EE) Administrator of the Office for Oregon Health Policy and
Research.
  (FF) Director of the Housing and Community Services Department.
  (GG) State Court Administrator.
  (HH) Director of the Department of Land Conservation and
Development.
  (II) Board chairperson of the Land Use Board of Appeals.
  (JJ) State Marine Director.
  (KK) Executive director of the Oregon Racing Commission.
  (LL) State Parks and Recreation Director.
  (MM) Public defense services executive director.
  (NN) Chairperson of the Public Employees' Benefit Board.
  (OO) Director of the Department of Public Safety Standards and
Training.
  (PP) Chairperson of the Oregon Student Access Commission.
  (QQ) Executive director of the Oregon Watershed Enhancement
Board.
  (RR) Director of the Oregon Youth Authority.
  (SS) Director of the Oregon Health Authority.
  (TT) Deputy Superintendent of Public Instruction.
  (h) Any assistant in the Governor's office other than personal
secretaries and clerical personnel.
  (i) Every elected city or county official.
  (j) Every member of a city or county planning, zoning or
development commission.
  (k) The chief executive officer of a city or county who
performs the duties of manager or principal administrator of the
city or county.
  (L) Members of local government boundary commissions formed
under ORS 199.410 to 199.519.
  (m) Every member of a governing body of a metropolitan service
district and the executive officer thereof.
  (n) Each member of the board of directors of the State Accident
Insurance Fund Corporation.
  (o) The chief administrative officer and the financial officer
of each common and union high school district, education service
district and community college district.
  (p) Every member of the following state boards and commissions:
  (A) Board of Geologic and Mineral Industries.
  (B) Oregon Business Development Commission.
  (C) State Board of Education.
  (D) Environmental Quality Commission.
  (E) Fish and Wildlife Commission of the State of Oregon.
  (F) State Board of Forestry.
  (G) Oregon Government Ethics Commission.
  (H) Oregon Health Policy Board.
  (I) State Board of Higher Education.
  (J) Oregon Investment Council.
  (K) Land Conservation and Development Commission.
  (L) Oregon Liquor Control Commission.
  (M) Oregon Short Term Fund Board.
  (N) State Marine Board.
  (O) Mass transit district boards.
  (P) Energy Facility Siting Council.
  (Q) Board of Commissioners of the Port of Portland.
  (R) Employment Relations Board.
  (S) Public Employees Retirement Board.
  (T) Oregon Racing Commission.
  (U) Oregon Transportation Commission.
  (V) Wage and Hour Commission.
  (W) Water Resources Commission.
  (X) Workers' Compensation Board.
  (Y) Oregon Facilities Authority.
  (Z) Oregon State Lottery Commission.
  (AA) Pacific Northwest Electric Power and Conservation Planning
Council.
  (BB) Columbia River Gorge Commission.
  (CC)   { - Oregon Health and Science University - }  { +
Portland Metropolitan Universities + } Board of Directors.
  (DD) Capitol Planning Commission.
  (EE) Higher Education Coordinating Commission.
  (q) The following officers of the State Treasurer:
  (A) Deputy State Treasurer.
  (B) Chief of staff for the office of the State Treasurer.
  (C) Director of the Investment Division.
  (r) Every member of the board of commissioners of a port
governed by ORS 777.005 to 777.725 or 777.915 to 777.953.
  (s) Every member of the board of directors of an authority
created under ORS 441.525 to 441.595.
  (2) By April 15 next after the date an appointment takes
effect, every appointed public official on a board or commission
listed in subsection (1) of this section shall file with the
Oregon Government Ethics Commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (3) By April 15 next after the filing deadline for the primary
election, each candidate described in subsection (1) of this
section shall file with the commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (4) Within 30 days after the filing deadline for the general
election, each candidate described in subsection (1) of this
section who was not a candidate in the preceding primary
election, or who was nominated for public office described in
subsection (1) of this section at the preceding primary election
by write-in votes, shall file with the commission a statement of
economic interest as required under ORS 244.060, 244.070 and
244.090.
  (5) Subsections (1) to (4) of this section apply only to
persons who are incumbent, elected or appointed public officials
as of April 15 and to persons who are candidates on April 15.
Subsections (1) to (4) of this section also apply to persons who
do not become candidates until 30 days after the filing deadline
for the statewide general election.
  (6) If a statement required to be filed under this section has
not been received by the commission within five days after the
date the statement is due, the commission shall notify the public
official or candidate and give the public official or candidate
not less than 15 days to comply with the requirements of this
section. If the public official or candidate fails to comply by
the date set by the commission, the commission may impose a civil
penalty as provided in ORS 244.350.
  SECTION 70. ORS 276.227 is amended to read:
  276.227. (1) The State of Oregon recognizes that providing and
operating state government facilities is a significant capital
investment in public infrastructure. Accordingly, it is the
policy of the State of Oregon to plan, finance, acquire,
construct, manage and maintain state government facilities in a
manner that maximizes and protects this investment.
  (2) The Oregon Department of Administrative Services shall
establish a statewide planning process that evaluates the needs
of the state's facilities, provides comparative information on
the condition of the state's facilities, establishes guidelines
and standards for acquiring, managing and maintaining state
facilities and provides financing and budgeting strategies to
allocate resources to facilities' needs.
  (3)(a) The Director of the Oregon Department of Administrative
Services shall establish a public review process for the proposed
capital projects of all state agencies. To assist in this review,
the director shall establish a Capital Projects Advisory Board
consisting of seven members. Five members shall be public members
knowledgeable about construction, facilities management and
maintenance issues. Two members may be state employees. The
director shall appoint the chairperson of the board.
  (b) The director, in consultation with the board, may request
that agencies submit updated long-range facility plans and
funding strategies that reflect changes in technology and
priorities. The director may ask the board to report on and make
recommendations related to long-range plans, the condition of
facilities, maintenance schedules, funding strategies and options
for new facilities. The director may seek recommendations from
the board regarding the needs of existing facilities, funding
strategies and long-term facility goals.
  (c) The review process may be applicable to capital projects
meeting the definition of major construction/acquisition in the
Governor's budget and to significant leases.
  (d) For each state agency proposing a capital project, the
review process may include an examination of the following:
  (A) The effectiveness of asset protection, including
maintenance, repair and other activities;
  (B) The effectiveness of space utilization, including an
inventory of existing occupied and unoccupied building space;
  (C) The advisability of lease, purchase or other funding
strategies;
  (D) The condition of existing occupied and unoccupied building
space;
  (E) Appropriate technology;
  (F) The agency's mission and long-range facilities plans; and
  (G) For new facilities, expansions and additions, the ability
of the agency to maintain and operate all of the agency's
facilities in a cost-effective manner.
  (e) The review process shall ensure that capital project
decisions are approached in a cost-effective manner after
considering all reasonable alternatives.
  (f) With assistance from the board, the department shall
provide recommendations and information to the Governor and the
Legislative Assembly on the construction, leasing and facilities
management issues of state government.
  (4) The department shall establish and maintain a central
database of information on state-owned property of all state
agencies, including land, buildings, infrastructure, improvements
and leases. This database shall include an inventory of
state-owned facilities as well as descriptive and technical
information.
  (5) State agencies shall establish and implement long-range
maintenance and management plans for facilities for which this
state is responsible to ensure that facilities are maintained in
good repair and that the useful lives of facilities are
maximized.  For each new facility, a maintenance and management
plan appropriate to the use and useful life of the facility shall
be developed and implemented.
  (6) The department may engage in cooperative projects with
local government.
  (7) The provisions of this section do not apply to public
universities listed in ORS 352.002,   { - the - }  Oregon Health
and Science University { + , Portland State University + } or a
community college as defined in ORS 341.005.
  SECTION 71. ORS 276.229 is amended to read:
  276.229. (1) State agencies shall develop four-year major
construction budgets. Projects included in these budgets may be
accelerated or deferred upon approval of the Emergency Board.
  (2) State agencies shall include the biennial costs associated
with maintenance, major repairs or building alterations in their
regular budget presentation to the Legislative Assembly.
Agencies shall include in their budget presentations short-term
and long-term plans to reduce or eliminate any existing backlog
of deferred maintenance.
  (3) The provisions of this section do not apply to public
universities listed in ORS 352.002,   { - the - }  Oregon Health
and Science University, { +  Portland State University + } or a
community college as defined in ORS 341.005.
  SECTION 72. ORS 279A.025 is amended to read:
  279A.025. (1) Except as provided in subsections (2) to (4) of
this section, the Public Contracting Code applies to all public
contracting.
  (2) The Public Contracting Code does not apply to:
  (a) Contracts between a contracting agency and:
  (A) Another contracting agency;
  (B)   { - The - }  Oregon Health and Science University;
   { +  (C) Portland State University; + }
    { - (C) - }  { +  (D) + } The Oregon State Bar;
    { - (D) - }  { +  (E) + } A governmental body of another
state;
    { - (E) - }  { +  (F) + } The federal government;
    { - (F) - }  { +  (G) + } An American Indian tribe or an
agency of an American Indian tribe;
    { - (G) - }  { +  (H) + } A nation, or a governmental body in
a nation, other than the United States; or
    { - (H) - }  { +  (I) + } An intergovernmental entity formed
between or among:
  (i) Governmental bodies of this or another state;
  (ii) The federal government;
  (iii) An American Indian tribe or an agency of an American
Indian tribe;
  (iv) A nation other than the United States; or
  (v) A governmental body in a nation other than the United
States;
  (b) Agreements authorized by ORS chapter 190 or by a statute,
charter provision, ordinance or other authority for establishing
agreements between or among governmental bodies or agencies or
tribal governing bodies or agencies;
  (c) Insurance and service contracts as provided for under ORS
414.115, 414.125, 414.135 and 414.145 for purposes of source
selection;
  (d) Grants;
  (e) Contracts for professional or expert witnesses or
consultants to provide services or testimony relating to existing
or potential litigation or legal matters in which a public body
is or may become interested;
  (f) Acquisitions or disposals of real property or interest in
real property;
  (g) Sole-source expenditures when rates are set by law or
ordinance for purposes of source selection;
  (h) Contracts for the procurement or distribution of textbooks;
  (i) Procurements by a contracting agency from an Oregon
Corrections Enterprises program;
  (j) The procurement, transportation or distribution of
distilled liquor, as defined in ORS 471.001, or the appointment
of agents under ORS 471.750 by the Oregon Liquor Control
Commission;
  (k) Contracts entered into under ORS chapter 180 between the
Attorney General and private counsel or special legal assistants;
  (L) Contracts for the sale of timber from lands owned or
managed by the State Board of Forestry and the State Forestry
Department;
  (m) Contracts for forest protection or forest related
activities, as described in ORS 477.406, by the State Forester or
the State Board of Forestry;
  (n) Sponsorship agreements entered into by the State Parks and
Recreation Director in accordance with ORS 565.080 (4);
  (o) Contracts entered into by the Housing and Community
Services Department in exercising the department's duties
prescribed in ORS chapters 456 and 458, except that the
department's public contracting for goods and services is subject
to ORS chapter 279B;
  (p) Contracts entered into by the State Treasurer in exercising
the powers of that office prescribed in ORS chapters 178, 286A,
287A, 289, 293, 294 and 295, including but not limited to
investment contracts and agreements, banking services, clearing
house services and collateralization agreements, bond documents,
certificates of participation and other debt repayment
agreements, and any associated contracts, agreements and
documents, regardless of whether the obligations that the
contracts, agreements or documents establish are general, special
or limited, except that the State Treasurer's public contracting
for goods and services is subject to ORS chapter 279B;
  (q) Contracts, agreements or other documents entered into,
issued or established in connection with:
  (A) The issuance of obligations, as defined in ORS 286A.100 and
287A.310, of a public body;
  (B) The making of program loans and similar extensions or
advances of funds, aid or assistance by a public body to a public
or private body for the purpose of carrying out, promoting or
sustaining activities or programs authorized by law; or
  (C) The investment of funds by a public body as authorized by
law, and other financial transactions of a public body that by
their character cannot practically be established under the
competitive contractor selection procedures of ORS 279B.050 to
279B.085;
  (r) Contracts for employee benefit plans as provided in ORS
243.105 (1), 243.125 (4), 243.221, 243.275, 243.291, 243.303 and
243.565;
  (s) Contracts for employee benefit plans as provided in ORS
243.860 to 243.886; or
  (t) Any other public contracting of a public body specifically
exempted from the code by another provision of law.
  (3) The Public Contracting Code does not apply to the
contracting activities of:
  (a) The Oregon State Lottery Commission;
  (b) The Oregon University System and member public
universities, except as provided in ORS 351.086;
  (c) The legislative department;
  (d) The judicial department;
  (e) Semi-independent state agencies listed in ORS 182.454,
except as provided in ORS 279.835 to 279.855 and 279A.250 to
279A.290;
  (f) Oregon Corrections Enterprises;
  (g) The Oregon Film and Video Office, except as provided in ORS
279A.100 and 279A.250 to 279A.290;
  (h) The Travel Information Council, except as provided in ORS
279A.250 to 279A.290;
  (i) The Oregon 529 College Savings Network and the Oregon 529
College Savings Board;
  (j) The Oregon Innovation Council;
  (k) The Oregon Utility Notification Center; or
  (L) Any other public body specifically exempted from the code
by another provision of law.
  (4) ORS 279A.200 to 279A.225 and 279B.050 to 279B.085 do not
apply to contracts made with qualified nonprofit agencies
providing employment opportunities for individuals with
disabilities under ORS 279.835 to 279.855.
  SECTION 73. ORS 283.143 is amended to read:
  283.143. (1) To encourage utilization of statewide integrated
videoconferencing and statewide online access services, the
Oregon Department of Administrative Services shall, in addition
to any other charge or assessment for providing
telecommunications services to state agencies, impose upon each
agency and public corporation a surcharge, in an amount
established by the department. All surcharge moneys collected
shall be deposited in the Oregon Department of Administrative
Services Operating Fund, and may be expended only for state
agency and public corporation telecommunication and
videoconferencing activities, under such terms and conditions as
the department may prescribe.
  (2) Notwithstanding subsection (1) of this section, the Oregon
Department of Administrative Services   { - shall - }  { +
may + } not impose the surcharge established by this section on
the Oregon University System { + , Portland State University + }
or   { - the - }  Oregon Health and Science University. The
Oregon Department of Administrative Services shall enter into an
agreement with the Oregon University System { + , Portland State
University + } and   { - the - } Oregon Health and Science
University on the amounts to be paid by the Oregon University
System { + , Portland State University + } and   { - the - }
Oregon Health and Science University to the Oregon Department of
Administrative Services in lieu of the surcharge provided for in
this section.
  SECTION 74. ORS 284.633 is amended to read:
  284.633. (1) The Oregon Progress Board may enter into an
agreement with:
  (a) Any state agency for the provision of clerical, technical
and management personnel to the board to serve as the board's
staff and for the provision of other administrative, operational
or overhead expenses necessary to accomplish the public purposes
of the board.
  (b) A nongovernmental entity for the provision of
administrative, operational or overhead expenses necessary to
accomplish the public purposes of the board.
  (2) As used in this section:
  (a) 'Public institution of higher education' means a community
college or a public university listed in ORS 352.002 { +  or
Portland State University + }.
  (b) 'State agency' means any officer, board, commission,
department, division or institution in the executive or
administrative branch of state government or a public institution
of higher education.
  SECTION 75. ORS 284.701 is amended to read:
  284.701. As used in ORS 284.701 to 284.749:
  (1) 'Clean energy' means a technology, product, process or
innovation that involves conservation of natural resources, solar
energy, green building products and services, biofuels, biomass
energy, bio-based products or other renewable and sustainable
energy.
  (2) 'Innovation-based economic development' includes, but is
not limited to, a technology, product, process or innovation
that:
  (a) Derives from and supports innovation and research;
  (b) Promotes Oregon's market capacities and competitive
advantages;
  (c) Involves technology-based innovation;
  (d) Facilitates the creation of new products, processes and
services that retain and create high-wage jobs;
  (e) Involves the establishment of partnerships between and
collaboration with research institutions, the private sector and
public entities;
  (f) Endeavors to transfer innovative technologies to the
private sector or to commercialize innovative research and
development; and
  (g) Includes, but is not limited to, clean energy and clean
energy economic development.
  (3) 'Oregon growth business' means:
  (a) An individual, group of individuals or private sector
business entity, including but not limited to a partnership,
limited liability company, corporation, firm, association or
other business entity, that engages in business that furthers
innovation-based economic development, that has the capacity upon
obtaining appropriate capital to generate significant high-skill,
high-wage employment in Oregon and that conducts business in
Oregon; or
  (b) An emerging growth business as defined in ORS 348.701.
  (4) 'Public entity' means any agency of the federal or state
government, county, city, town, public corporation or political
subdivision in this state.
  (5) 'Research institution' means:
  (a) A community college as defined in ORS 341.005;
  (b) A public university listed in ORS 352.002;
  (c)   { - The - }  Oregon Health and Science University
 { - public corporation created under ORS 353.020 - } ;
   { +  (d) Portland State University; + }
    { - (d) - }  { +  (e) + } An Oregon-based, generally
accredited, not-for-profit private institution of higher
education;
    { - (e) - }  { +  (f) + } A federal research laboratory
conducting research in Oregon;
    { - (f) - }  { +  (g) + } A private not-for-profit research
institution located in Oregon;
    { - (g) - }  { +  (h) + } An institution for higher education
as defined in ORS 289.005; or
    { - (h) - }  { +  (i) + } A private institution of higher
education located in Oregon.
  (6) 'Traded sector' has the meaning given that term in ORS
285A.010.
  SECTION 76. ORS 284.701, as amended by section 20, chapter 90,
Oregon Laws 2012, is amended to read:
  284.701. As used in ORS 284.701 to 284.749:
  (1) 'Clean energy' means a technology, product, process or
innovation that involves conservation of natural resources, solar
energy, green building products and services, biofuels, biomass
energy, bio-based products or other renewable and sustainable
energy.
  (2) 'Innovation-based economic development' includes, but is
not limited to, a technology, product, process or innovation
that:
  (a) Derives from and supports innovation and research;
  (b) Promotes Oregon's market capacities and competitive
advantages;
  (c) Involves technology-based innovation;
  (d) Facilitates the creation of new products, processes and
services that retain and create high-wage jobs;
  (e) Involves the establishment of partnerships between and
collaboration with research institutions, the private sector and
public entities;
  (f) Endeavors to transfer innovative technologies to the
private sector or to commercialize innovative research and
development; and
  (g) Includes, but is not limited to, clean energy and clean
energy economic development.
  (3) 'Oregon growth business' means:
  (a) An individual, group of individuals or private sector
business entity, including but not limited to a partnership,
limited liability company, corporation, firm, association or
other business entity, that engages in business that furthers
innovation-based economic development, that has the capacity,
upon obtaining appropriate capital, to generate significant
high-skill, high-wage employment in Oregon and that conducts
business in Oregon; or
  (b) An emerging growth business consisting of an individual or
group of individuals or a new or small company, including but not
limited to any new or small partnership, limited liability
company, corporation, firm, association or other business entity,
that has the capacity, upon obtaining appropriate capital, to
generate significant high-skill, high-wage employment.
  (4) 'Public entity' means any agency of the federal or state
government, county, city, town, public corporation or political
subdivision in this state.
  (5) 'Research institution' means:
  (a) A community college as defined in ORS 341.005;
  (b) A public university listed in ORS 352.002;
  (c)   { - The - }  Oregon Health and Science University
 { - public corporation created under ORS 353.020 - } ;
   { +  (d) Portland State University; + }
    { - (d) - }  { +  (e) + } An Oregon-based, generally
accredited, not-for-profit private institution of higher
education;
    { - (e) - }  { +  (f) + } A federal research laboratory
conducting research in Oregon;
    { - (f) - }  { +  (g) + } A private not-for-profit research
institution located in Oregon;
    { - (g) - }  { +  (h) + } An institution for higher education
as defined in ORS 289.005; or
    { - (h) - }  { +  (i) + } A private institution of higher
education located in Oregon.
  (6) 'Traded sector' has the meaning given that term in ORS
285A.010.
  SECTION 77. ORS 285B.168 is amended to read:
  285B.168. (1) The Oregon Business Development Department may
make grants available to a community college district, a
community college service district { + , Portland State
University + } or, with the concurrence of the Commissioner for
Community College Services and the Chancellor of the Oregon
University System, a public university listed in ORS 352.002 to
assist in the formation, improvement and operation of small
business development centers.  If a community college district, a
community college service district { + , Portland State
University + } or a public university  { + listed in ORS
352.002 + } is unable to adequately provide services in a
specific geographic area, the department may make grants
available to other service providers as determined by the
department.
   { +  (2) + } The grant application shall include:
  (a) Plans for providing small business owners and managers
individual counseling, to the greatest extent practicable, in
subject areas critical to small business success;
  (b) A budget for the year for which a grant is requested,
including cost apportionment among the department, small business
clients, the community college,  { + Portland State University,
or + } the public university or other service providers and other
sources;
  (c) A plan for evaluating the effect of the program on small
business clients served; and
  (d) A plan for providing collaboration with other state
agencies, state-supported organizations and private sector
entities that provide services to small businesses.
    { - (2) - }   { + (3) + } The grants made under subsection
(1) of this section are to be used by the grant recipient to
provide:
  (a) Small business development center staff and support staff;
  (b) Expert resource persons from the business community;
  (c) Other training and business resources as approved by the
department in skill areas for which, or areas of the state where,
the grant recipient can demonstrate it does not otherwise have
the capacity or expertise to provide the resources; and
  (d) Other costs related to providing training, counseling and
business resources to small business clients.
    { - (3) - }   { + (4) + } To be eligible for a grant under
subsection (1) of this section, the recipient shall be required
to provide funds, in-kind contributions or some combination of
funds and contributions, in accordance with rules adopted by the
department.
    { - (4) - }   { + (5) + } Subject to the approval of the
department, a grant recipient may subcontract funds received
under this section to any other entity that is eligible to
receive funding under this section.
    { - (5) - }   { + (6) + } The grant recipient shall submit a
final report to the department after the distribution of grant
funds and the delivery of services to the proposed business
clients. The report shall state whether the plan and related
budget have met the applicable criteria as described in the
recipient's application for the grant period.
  SECTION 78. ORS 286A.001 is amended to read:
  286A.001. As used in this chapter:
  (1) 'Agreement for exchange of interest rates' means a
contract, or an option or forward commitment to enter into a
contract, for the exchange of interest rates that provides for:
  (a) Payments based on levels of or changes in interest rates;
or
  (b) Provisions to hedge payment, rate, spread or similar
exposure including, but not limited to, an interest rate floor or
cap or an option, put or call.
  (2) 'Bond':
  (a) Means a contractual undertaking or instrument of the State
of Oregon to repay borrowed moneys.
  (b) Does not mean a financing agreement, as defined in ORS
283.085, if the principal amount of the agreement is $100,000 or
less, or a credit enhancement device.
  (3) 'Counterparty' means an entity with whom the State of
Oregon enters into an agreement for exchange of interest rates.
  (4) 'Credit enhancement device':
  (a) Means a letter of credit, line of credit, standby bond
purchase agreement, bond insurance policy, reserve surety bond or
other device or facility used to enhance the creditworthiness,
liquidity or marketability of bonds or agreements for the
exchange of interest rates; and
  (b) Does not mean a bond.
  (5) 'Credit enhancement device fee' means a payment required to
be made to the provider of a credit enhancement device securing a
bond or securing an agreement for the exchange of interest rates.
  (6) 'General obligation bond' means a bond that constitutes
indebtedness of the state under section 7, Article XI of the
Oregon Constitution, and that is exempt from the $50,000
limitation on indebtedness set forth in that section.
  (7) 'Operative document' means a bond declaration, trust
agreement, indenture, security agreement or other document in
which the State of Oregon pledges property as security for an
obligation, as defined in ORS 286A.100.
  (8) 'Refunding bond' means a bond of the State of Oregon that
is issued to refund another bond, regardless of whether the
refunding is on a current, advance, forward delivery, synthetic
or other basis.
  (9) 'Related agency' means the state agency that requests the
State Treasurer to issue bonds pursuant to ORS 286A.025 or for
which the State Treasurer has issued bonds.
  (10) 'Related bond' means a bond for which the State of Oregon
enters into an agreement for exchange of interest rates.
  (11) 'Revenue' means all fees, tolls, excise taxes,
assessments, property taxes and other taxes, rates, charges,
rentals and other income or receipts derived by a state agency or
to which a state agency is entitled.
  (12) 'Revenue bond' means a bond of the State of Oregon that is
not a general obligation bond.
  (13) 'State agency':
  (a) Includes a statewide elected officer, board, commission,
department, division, authority or other entity, without regard
to the designation given to the entity, that is within state
government, as defined in ORS 174.111; and
  (b) Does not include:
  (A) A statewide elected judge;
  (B) The State Treasurer;
  (C) A local government, as defined in ORS 174.116;
  (D)   { - The - }  Oregon Health and Science University;
   { +  (E) Portland State University; + }
    { - (E) - }  { +  (F) + } A special government body, as
defined in ORS 174.117, except to the extent a special government
body must be considered a state agency in order to achieve the
purposes of Article XI-K of the Oregon Constitution; or
    { - (F) - }  { +  (G) + } A semi-independent state agency
listed in ORS 182.454, 377.835 or 674.305, or any other state
agency denominated by statute as a semi-independent state agency.
  (14) 'Termination payment' means the amount payable under an
agreement for exchange of interest rates by one party to another
party as a result of the termination, in whole or part, of the
agreement prior to the expiration of the stated term.
  SECTION 79. ORS 287A.001 is amended to read:
  287A.001. As used in this chapter:
  (1) 'Advance refunding bond' means a bond all or part of the
proceeds of which are to be used to pay an outstanding bond one
year or more after the advance refunding bond is issued.
  (2) 'Agreement for exchange of interest rates' means a
contract, or an option or forward commitment to enter into a
contract, for an exchange of interest rates for related bonds
that provides for:
  (a) Payments based on levels or changes in interest rates; or
  (b) Provisions to hedge payment, rate, spread or similar
exposure including, but not limited to, an interest rate floor or
cap or an option, put or call.
  (3) 'Bond':
  (a) Means a contractual undertaking or instrument of a public
body to repay borrowed moneys.
  (b) Does not mean a credit enhancement device.
  (4) 'Capital construction' has the meaning given that term in
ORS 310.140.
  (5) 'Capital improvements' has the meaning given that term in
ORS 310.140.
  (6) 'Credit enhancement device':
  (a) Means a letter of credit, line of credit, standby bond
purchase agreement, bond insurance policy, reserve surety bond or
other device or facility used to enhance the creditworthiness,
liquidity or marketability of bonds or agreements for exchange of
interest rates.
  (b) Does not mean a bond.
  (7) 'Current refunding bond' means a bond the proceeds of which
are to be used to pay or purchase an outstanding bond less than
one year after the current refunding bond is issued.
  (8) 'Forward current refunding' means execution and delivery of
a purchase agreement or similar instrument under which a public
body contracts to sell current refunding bonds for delivery at a
future date that is one year or more after execution of the
purchase agreement or similar instrument.
  (9) 'General obligation bond' means exempt bonded indebtedness,
as defined in ORS 310.140, that is secured by a commitment to
levy ad valorem taxes outside the limits of sections 11 and 11b,
Article XI of the Oregon Constitution.
  (10) 'Lawfully available funds' means revenues or other moneys
of a public body including, but not limited to, moneys credited
to the general fund of the public body, revenues from an ad
valorem tax and revenues derived from other taxes levied by the
public body that are not dedicated, restricted or obligated by
law or contract to an inconsistent expenditure or use.
  (11) 'Operative document' means a bond declaration, trust
agreement, indenture, security agreement or other document in
which a public body pledges revenue or property as security for a
bond.
  (12) 'Pledge' means:
  (a) To create a lien on property pursuant to ORS 287A.310.
  (b) A lien created on property pursuant to ORS 287A.310.
  (13) 'Public body' means:
  (a) A county of this state;
  (b) A city of this state;
  (c) A local service district as defined in ORS 174.116 (2);
  (d) A special government body as defined in ORS 174.117;
  (e) Oregon Health and Science University;   { - or - }
   { +  (f) Portland State University; or + }
    { - (f) - }  { +  (g) + } Any other political subdivision of
this state that is authorized by the Legislative Assembly to
issue bonds.
  (14) 'Refunding bond' means an advance refunding bond, a
current refunding bond or a forward current refunding bond.
  (15) 'Related bond' means a bond for which the public body
enters into an agreement for exchange of interest rates or
obtains a credit enhancement device.
  (16) 'Revenue' means all fees, tolls, excise taxes,
assessments, property taxes and other taxes, rates, charges,
rentals and other income or receipts derived by a public body or
to which a public body is entitled.
  (17) 'Revenue bond' means a bond that is not a general
obligation bond.
  (18) 'Termination payment' means the amount payable under an
agreement for exchange of interest rates by one party to another
party as a result of the termination, in whole or part, of the
agreement prior to the expiration of the stated term.
  SECTION 80. Section 1, chapter 101, Oregon Laws 2012, is
amended to read:
   { +  Sec. 1. + } (1) Notwithstanding ORS 291.229, a state
agency that employs more than 100 employees and has not, by the
 { - effective date of this 2012 Act - }  { +  April 11,
2012 + }, attained a ratio of at least 11 to 1 of employees of
the state agency who are not supervisory employees to supervisory
employees:
  (a) May not fill the position of a supervisory employee until
the agency has increased the agency's ratio of employees to
supervisory employees so that the ratio is at least one
additional employee to supervisory employees; and
  (b) Shall, not later than October 31, 2012, lay off or
reclassify the number of supervisory employees necessary to
attain the increase in the ratio specified in paragraph (a) of
this subsection if the increase in that ratio is not attained
under paragraph (a) of this subsection or through attrition.
  (2) Notwithstanding ORS 291.229, a state agency that employs
more than 100 employees and has complied with the requirements of
subsection (1) of this section, but has not attained a ratio of
at least 11 to 1 of employees of the state agency who are not
supervisory employees to supervisory employees:
  (a) May not fill the position of a supervisory employee until
the agency has increased the agency's ratio of employees to
supervisory employees by at least one additional employee; and
  (b) Not later than October 31 of each subsequent year, shall
lay off or reclassify the number of supervisory employees
necessary to increase the agency's ratio of employees to
supervisory employees so that the ratio is at least one
additional employee to supervisory employees.
  (3) Layoffs or reclassifications required under this section
must be made in accordance with the terms of any applicable
collective bargaining agreement. A supervisory employee who is
reclassified into a classified position pursuant to this section
shall be compensated in the salary range for the classified
position unless otherwise provided by an applicable collective
bargaining agreement.
  (4) Upon application from a state agency, the Oregon Department
of Administrative Services may grant a state agency an exception
from the requirements of subsections (1) to (3) of this section
if the department determines that the exception is warranted due
to unique or emergency circumstances. The department shall report
all exceptions granted under this subsection to the Joint
Committee on Ways and Means, the Joint Interim Committee on Ways
and Means or the Emergency Board.
  (5) As used in this section:
  (a)(A) 'State agency' means all state officers, boards,
commissions, departments, institutions, branches, agencies,
divisions and other entities, without regard to the designation
given to those entities, that are within the executive department
of government as described in section 1, Article III of the
Oregon Constitution.
  (B) 'State agency' does not include:
  (i) The legislative department as defined in ORS 174.114;
  (ii) The judicial department as defined in ORS 174.113;
  (iii) The Public Defense Services Commission;
  (iv) The Secretary of State and the State Treasurer in the
performance of the duties of their constitutional offices;
  (v) Semi-independent state agencies listed in ORS 182.454;
  (vi) The Oregon Tourism Commission;
  (vii) The Oregon Film and Video Office;
  (viii) The Oregon University System;
  (ix) The Oregon Health and Science University  { + and Portland
State University + };
  (x) The Travel Information Council;
  (xi) Oregon Corrections Enterprises;
  (xii) The Oregon State Lottery Commission;
  (xiii) The State Accident Insurance Fund Corporation;
  (xiv) The Oregon Health Insurance Exchange Corporation;
  (xv) The Oregon Utility Notification Center;
  (xvi) Oregon Community Power;
  (xvii) The Citizens' Utility Board;
  (xviii) A special government body as defined in ORS 174.117;
  (xix) Any other public corporation created under a statute of
this state and specifically designated as a public corporation;
and
  (xx) Any other semi-independent state agency denominated by
statute as a semi-independent state agency.
  (b) 'Supervisory employee' has the meaning given that term in
ORS 243.650.
  SECTION 81. ORS 291.229, as amended by section 2, chapter 101,
Oregon Laws 2012, is amended to read:
  291.229. (1) The Oregon Department of Administrative Services
shall develop a plan for state agencies that employ more than 100
employees to attain a ratio of 11 to 1 of employees of state
agencies who are not supervisory employees to supervisory
employees. The plan shall be used to develop the legislatively
adopted budget and may provide for a transition to the ratio
specified in this subsection during a period lasting more than
one biennium.
  (2) As part of the development of the legislatively adopted
budget, during each odd-numbered year regular session of the
Legislative Assembly, the department shall report on the plan
developed under subsection (1) of this section to the Joint
Committee on Ways and Means. The report shall include the ratio
of employees of state agencies who are not supervisory employees
to supervisory employees.
  (3) As used in this section:
  (a) 'Legislatively adopted budget' means the budget enacted by
the Legislative Assembly during an odd-numbered year regular
session.
  (b)(A) 'State agency' means all state officers, boards,
commissions, departments, institutions, branches, agencies,
divisions and other entities, without regard to the designation
given to those entities, that are within the executive department
of government as described in section 1, Article III of the
Oregon Constitution.
  (B) 'State agency' does not include:
  (i) The legislative department as defined in ORS 174.114;
  (ii) The judicial department as defined in ORS 174.113;
  (iii) The Public Defense Services Commission;
  (iv) The Secretary of State and the State Treasurer in the
performance of the duties of their constitutional offices;
  (v) Semi-independent state agencies listed in ORS 182.454;
  (vi) The Oregon Tourism Commission;
  (vii) The Oregon Film and Video Office;
  (viii) The Oregon University System;
  (ix) The Oregon Health and Science University { +  and Portland
State University + };
  (x) The Travel Information Council;
  (xi) Oregon Corrections Enterprises;
  (xii) The Oregon State Lottery Commission;
  (xiii) The State Accident Insurance Fund Corporation;
  (xiv) The Oregon Health Insurance Exchange Corporation;
  (xv) The Oregon Utility Notification Center;
  (xvi) Oregon Community Power;
  (xvii) The Citizens' Utility Board;
  (xviii) A special government body as defined in ORS 174.117;
  (xix) Any other public corporation created under a statute of
this state and specifically designated as a public corporation;
and
  (xx) Any other semi-independent state agency denominated by
statute as a semi-independent state agency.
  (c) 'Supervisory employee' has the meaning given that term in
ORS 243.650.
  SECTION 82. ORS 307.095 is amended to read:
  307.095. (1) Any portion of state property that is used during
the tax year for parking on a rental or fee basis to private
individuals is subject to ad valorem taxation.
  (2) The real market value of such portion shall be computed by
determining that percentage which the total of receipts from
private use bears to the total of receipts from all use of the
property. The assessed value of such portion shall be computed as
provided in ORS 308.146. However, receipts from any use by a
state officer or employee in the performance of the official
duties of the state officer or employee shall not be considered
as receipts from private use in computing the portion subject to
ad valorem taxation.
  (3) This section and ORS 276.592 do not apply to state property
that is used by the Oregon University System { + , Portland State
University + } or   { - the - }  Oregon Health and Science
University solely to provide parking for employees, students or
visitors.
  SECTION 83. ORS 307.110 is amended to read:
  307.110. (1) Except as provided in ORS 307.120, all real and
personal property of this state or any institution or department
thereof or of any county or city, town or other municipal
corporation or political subdivision of this state, held under a
lease or other interest or estate less than a fee simple, by any
person whose real property, if any, is taxable, except employees
of the state, municipality or political subdivision as an
incident to such employment, shall be subject to assessment and
taxation for the assessed or specially assessed value thereof
uniformly with real property of nonexempt ownerships.
  (2) Each leased or rented premises not exempt under ORS 307.120
and subject to assessment and taxation under this section which
is located on property used as an airport and owned by and
serving a municipality or port shall be separately assessed and
taxed.
  (3) Nothing contained in this section shall be construed as
subjecting to assessment and taxation any publicly owned property
described in subsection (1) of this section that is:
  (a) Leased for student housing by a school or college to
students attending such a school or college.
  (b) Leased to or rented by persons, other than sublessees or
subrenters, for agricultural or grazing purposes and for other
than a cash rental or a percentage of the crop.
  (c) Utilized by persons under a land use permit issued by the
Department of Transportation for which the department's use
restrictions are such that only an administrative processing fee
is able to be charged.
  (d) County fairgrounds and the buildings thereon, in a county
holding annual county fairs, managed by the county fair board
under ORS 565.230, if utilized, in addition to county fair use,
for any of the purposes described in ORS 565.230 (2), or for
horse stalls or storage for recreational vehicles or farm
machinery or equipment.
  (e) The properties and grounds managed and operated by the
State Parks and Recreation Director under ORS 565.080, if
utilized, in addition to the purpose of holding the Oregon State
Fair, for horse stalls or for storage for recreational vehicles
or farm machinery or equipment.
  (f) State property that is used by the Oregon University
System { + , Portland State University + } or   { - the - }
Oregon Health and Science University to provide parking for
employees, students or visitors.
  (g) Property of a housing authority created under ORS chapter
456 which is leased or rented to persons of lower income for
housing pursuant to the public and governmental purposes of the
housing authority. For purposes of this paragraph, 'persons of
lower income' has the meaning given the phrase under ORS 456.055.
  (h) Property of a health district if:
  (A) The property is leased or rented for the purpose of
providing facilities for health care practitioners practicing
within the county; and
  (B) The county is a frontier rural practice county under rules
adopted by the Office of Rural Health.
  (4) Property determined to be an eligible project for tax
exemption under ORS 285C.600 to 285C.626 and 307.123 that was
acquired with revenue bonds issued under ORS 285B.320 to 285B.371
and that is leased by this state, any institution or department
thereof or any county, city, town or other municipal corporation
or political subdivision of this state to an eligible applicant
shall be assessed and taxed in accordance with ORS 307.123. The
property's continued eligibility for taxation and assessment
under ORS 307.123 is not affected:
  (a) If the eligible applicant retires the bonds prior to the
original dates of maturity; or
  (b) If any applicable lease or financial agreement is
terminated prior to the original date of expiration.
  (5) The provisions of law for liens and the payment and
collection of taxes levied against real property of nonexempt
ownerships shall apply to all real property subject to the
provisions of this section. Taxes remaining unpaid upon the
termination of a lease or other interest or estate less than a
fee simple, shall remain a lien against the real or personal
property.
  (6) If the state enters into a lease of property with, or
grants an interest or other estate less than a fee simple in
property to, a person whose real property, if any, is taxable,
then within 30 days after the date of the lease, or within 30
days after the date the interest or estate less than a fee simple
is created, the state shall file a copy of the lease or other
instrument creating or evidencing the interest or estate with the
county assessor. This section applies notwithstanding that the
property may otherwise be entitled to an exemption under this
section, ORS 307.120 or as otherwise provided by law.
  SECTION 84. ORS 326.543 is amended to read:
  326.543. (1) As used in this section:
  (a) 'Education service district' has the meaning given that
term in ORS 334.003.
  (b) 'Facility' means the school operated under ORS 346.010.
  (c) 'Post-secondary institution' means:
  (A) A community college as defined in ORS 341.005;
  (B) A public university listed in ORS 352.002;   { - and - }
  (C)   { - The - }  Oregon Health and Science University
 { - . - }  { + ; and
  (D) Portland State University. + }
  (d) 'School district' has the meaning given that term in ORS
330.005.
  (2) The interest or estate of an education service district, a
facility, a post-secondary institution or a school district in
any real property may not be extinguished or diminished by
adverse possession.
  SECTION 85. Section 14, chapter 36, Oregon Laws 2012, is
amended to read:
   { +  Sec. 14. + } (1) For the purposes of this section:
  (a) 'Achievement compact' means an agreement entered into
between the Oregon Education Investment Board and the governing
body of an education entity as described in this section.
  (b) 'Education entity' means:
  (A) A school district, as defined in ORS 332.002;
  (B) An education service district operated under ORS chapter
334;
  (C) A community college district or community college service
district operated under ORS chapter 341;
  (D) The Oregon University System established by ORS 351.011;
  (E) A public university of the Oregon University System, as
listed in ORS 352.002;   { - and - }
   { +  (F) Portland State University; and + }
    { - (F) - }   { + (G) + } The health professions and graduate
science programs of the Oregon Health and Science University
operated under ORS chapter 353.
  (c) 'Governing body of an education entity' means:
  (A) For a school district, the school district board.
  (B) For an education service district, the board of directors
of the education service district.
  (C) For a community college district or a community college
service district, the board of education of the community college
district.
  (D) For the Oregon University System, the State Board of Higher
Education.
  (E) For a public university of the Oregon University System,
the president of the university.
  (F) For   { - the - }   { + Portland State University and + }
Oregon Health and Science University, the   { - Oregon Health and
Science University - }  { + Portland Metropolitan
Universities + } Board of Directors.
  (2)(a) Prior to the beginning of each fiscal year, the
governing body of each education entity must enter into an
achievement compact with the Oregon Education Investment Board
for the fiscal year.
  (b) Governing bodies of education entities identified in
subsection (1)(b)(A) to (C) of this section shall enter into
achievement compacts as part of the budgeting process under ORS
294.305 to 294.565 and shall submit achievement compacts to the
board prior to July 1 of each year.
  (c) The board shall specify a process for adoption and a
timeline for submission of achievement compacts for education
entities identified in subsection (1)(b)(D) to (F) of this
section.
  (d) The board shall provide to each school district a number
quantifying the district's estimated level of funding for the
next fiscal year compared to the determination of funding needed
to ensure that the state's system of kindergarten through grade
12 public education meets the quality goals specified under ORS
327.506.
  (3)(a) The board shall establish the terms for achievement
compacts.
  (b) The terms of an achievement compact may include:
  (A) A description of goals for outcomes that are consistent
with the educational goals identified in ORS 329.015, the
findings described in ORS 351.003 and the mission of education
provided in ORS 351.009.
  (B) A description of the outcomes and measures of progress that
will allow each education entity to quantify:
  (i) Completion rates for:
  (I) Critical stages of learning and programs of study;
  (II) The attainment of diplomas, certificates and degrees; and
  (III) Achieving the high school and post-secondary education
goals established in ORS 351.009 and a projection of the progress
needed to achieve those goals by 2025;
  (ii) Validations of the quality of knowledge and skills
acquired by students of the education entity; and
  (iii) The relevance of the knowledge and skills acquired by the
students of the education entity and the means by which those
skills and knowledge will contribute to the workforce, the
economy and society as described in state policy.
  (C) Other information suggested by the governing body of an
education entity and approved by the board.
  (c) Notwithstanding the terms described in paragraph (b) of
this subsection, for an achievement compact entered into by an
education entity identified in subsection (1)(b)(F) of this
section, the terms of the achievement compact shall be limited to
the enrollment of, and attainment of degrees by, Oregon residents
in programs for which the state provides funding.
  (4)(a) The governing body of each education entity shall
identify a target number and percentage of students for
achievement of the outcomes, measures of progress and goals
specified in the achievement compact for the fiscal year.
  (b) The governing body of each education entity shall provide a
target number and percentage of students for the aggregate of all
disadvantaged subgroups, as defined by federal law or specified
by rules adopted by the board. The target number and percentage
of students must reflect the education entity's goals of
improving education outcomes for disadvantaged student groups and
closing any student achievement gaps between disadvantaged
student groups and other student groups.
  (5) As part of the process of entering into an achievement
compact, the governing body of an education entity shall ensure
that open communications are provided to parents, students,
teachers or faculty, employees, exclusive bargaining
representatives and community representatives for the purposes of
explaining and discussing the outcomes, measures of progress,
goals and targets specified in the achievement compact for the
fiscal year. The open communications must be provided during each
education entity's public budget process.
  (6) The board shall specify the format of the achievement
compacts and provide model achievement compacts to the governing
body of each education entity.
  (7) The board may adopt a timeline and method for governing
bodies of education entities to provide the board with a report
at the end of a fiscal year that describes the achievements made
by the education entities during the fiscal year. The report:
  (a) Must include disaggregated data for each disadvantaged
student group specified by the board; and
  (b) May state achievements in numbers and percentages and in
relation to the outcomes, measures of progress, goals and targets
specified in the achievement compact for the fiscal year.
  SECTION 86. ORS 329.840 is amended to read:
  329.840. (1) There is created the Oregon Virtual School
District within the Department of Education. The purpose of the
Oregon Virtual School District is to provide online courses to
kindergarten through grade 12 public school students.

  (2) The Oregon Virtual School District shall provide online
courses that meet academic content standards as defined in ORS
329.007 and meet other criteria adopted by the State Board of
Education. Any person who teaches an online course must be
properly licensed or registered as required by ORS 338.135 and
342.173 for a person employed by a school district or public
charter school. All school districts and public charter schools
may allow students to access the online courses offered by the
Oregon Virtual School District.
  (3) The Superintendent of Public Instruction may contract with
education service districts, school districts, public charter
schools, community colleges, public universities listed in ORS
352.002 { + , Portland State University + } or any other public
entity to provide online courses through the Oregon Virtual
School District.
  (4) Statutes and rules that apply to other school districts do
not apply to the Oregon Virtual School District except as
provided under this section or by rule of the State Board of
Education. The Oregon Virtual School District is not considered a
school district for purposes of apportionment of the State School
Fund and the department may not receive a direct apportionment
under ORS 327.008 from the State School Fund for the Oregon
Virtual School District.
  (5) The board may adopt the rules necessary for the
administration of the Oregon Virtual School District and shall
adopt rules to establish:
  (a) The procedure and criteria to be used for the selection of
online courses to be offered through the Oregon Virtual School
District;
  (b) The qualifications of students who may access online
courses through the Oregon Virtual School District;
  (c) The number of credits for which students may access online
courses through the Oregon Virtual School District; and
  (d) The student-to-teacher ratio for online courses offered
through the Oregon Virtual School District.
  SECTION 87. ORS 332.155 is amended to read:
  332.155. A district school board:
  (1) May furnish, equip, repair, lease, purchase and build
schoolhouses, including high schools, junior high schools, career
and technical education schools, gymnasiums, houses for teachers
and other employees, and like buildings; and locate, buy and
lease lands for all school purposes. Leases authorized by this
section include lease-purchase agreements whereunder the district
may acquire ownership of the leased property at a nominal price.
Such leases and lease-purchase agreements may be for a term of up
to 30 years.
  (2) May contract for the removal or containment of asbestos
substances in school buildings and for repairs made necessary by
such removal or containment. Contracts authorized by this section
may be for a term exceeding one year.
  (3) May construct or cooperate in the construction of schools
for training of student teachers on state or district owned
lands, for  { + Portland State University or + } any public
university listed in ORS 352.002 that is in or contiguous to the
district, and to expend district funds in so doing.
  (4) May acquire personal property by a lease-purchase agreement
or contract of purchase for a term exceeding one year. A
lease-purchase agreement is one in which the rent payable by the
district is expressly agreed to have been established to reflect
the savings resulting from the exemption from taxation, and the
district is entitled to ownership of the property at a nominal or
other price that is stated or determinable by the terms of the
agreement and was not intended to reflect the true value of the
property.

  (5) May lease, sell and convey all property of the district as
may not in the judgment of the district school board be required
for school purposes.
  (6) May sell property of the district in transactions whereby
the district has the right to lease, occupy or reacquire the
property following the sale or have facilities constructed
thereon or furnished to the specifications of the district. The
construction or furnishing of such facilities shall be subject
to:
  (a) ORS chapter 279A, except ORS 279A.125 and 279A.250 to
279A.290;
  (b) ORS chapter 279B, except ORS 279B.235, 279B.240, 279B.270,
279B.275 and 279B.280; and
  (c) ORS chapter 279C.005, 279C.100 to 279C.125 and 279C.300 to
279C.470.
  (7) Shall furnish the schools with supplies, equipment,
apparatus and services essential to meeting the requirements of a
standard school and may furnish such other supplies, equipment,
apparatus and services as the board considers advisable.
  (8) May construct, purchase or lease in cooperation with other
school districts or community college districts facilities for
secondary career and technical education programs for pupils of
more than one district and may furnish or cooperate in furnishing
supplies and equipment for such facilities, to be financed in the
same manner as other school buildings and supplies are financed.
  (9) May purchase real property upon a contractual basis when
the period of time allowed for payment under the contract does
not exceed 30 years.
  (10) May purchase relocatable classrooms and other relocatable
structures in installment transactions in which deferred
installments of the purchase price are payable over not more than
10 years from the date such property is delivered to the district
for occupancy and are secured by a security interest in such
property. Such transactions may take the form of, but are not
limited to, lease-purchase agreements.
  (11) May enter into rental or lease-purchase agreements
covering motor vehicles operated by the district.
  SECTION 88. ORS 336.057 is amended to read:
  336.057. In all public schools courses of instruction shall be
given in the Constitution of the United States and in the history
of the United States. These courses shall:
  (1) Begin not later than the opening of the eighth grade and
shall continue in grades 9 through 12.
  (2) Be required in  { + Portland State University and + } all
public universities listed in ORS 352.002  { - , except the
Oregon Health and Science University, - }  and in all state and
local institutions that provide education for patients or inmates
to an extent to be determined by the Superintendent of Public
Instruction.
  SECTION 89. ORS 337.500 is amended to read:
  337.500. As used in ORS 337.500 to 337.506:
  (1) 'Adopter' means any faculty member or academic department
or other adopting entity at a higher education institution
responsible for considering and choosing course materials to be
utilized in connection with accredited courses taught at the
institution.
  (2) 'Higher education institution' means:
  (a) A community college, as defined in ORS 341.005;
  (b) A public university listed in ORS 352.002;
  (c)   { - The - }  Oregon Health and Science University;
   { +  (d) Portland State University; + }
    { - (d) - }  { +  (e) + } A private institution of higher
education located in Oregon; and
    { - (e) - }  { +  (f) + } A bookstore that serves as the
primary bookstore for an entity listed in paragraphs (a) to
 { - (d) - }  { +  (e) + } of this subsection.
  (3) 'Special edition' means a bound book that does not
constitute a traditional textbook and that may or may not be used
for instructional purposes.
  (4)(a) 'Textbook bundle' means a textbook packaged together
with other supplemental course materials, including but not
limited to workbooks, study guides, online technologies, online
course resources, CD-ROMs or other books, to be sold as course
material for one price.
  (b) 'Textbook bundle' does not include a textbook that is
unusable without the supplemental course materials, materials
that cannot be sold separately due to third-party contractual
agreements, custom editions or special editions.
  SECTION 90. ORS 337.511 is amended to read:
  337.511. As used in ORS 337.511 to 337.524:
  (1) 'Alternative format' means any medium or format for the
presentation of instructional materials other than standard print
that is needed by a post-secondary student with a print
disability for a reading accommodation, including but not limited
to Braille, large print texts, audio recordings, digital texts
and digital talking books.
  (2) 'Electronic format' means a medium or format containing
digital text.
  (3) 'Instructional material' means a textbook or other material
if:
  (a) The textbook or other material, including additional prints
or new editions of previously published instructional material,
is published on or after January 1, 2004, and is published
primarily for use by students in a course of study in which a
post-secondary student with a print disability is enrolled;
  (b) The textbook or other material is required for a student's
success in the course, as determined by the course instructor in
consultation with the representative making the request for an
electronic format under ORS 337.517 (2);
  (c) The textbook or other material is required for the course
as stated in the course syllabus or other curriculum documents,
or the use of the materials by the student is necessary for the
completion of course assignments that are used to evaluate the
student, such as to determine the student's proficiency level or
assign a grade; and
  (d) Software is commercially available to permit the conversion
of an electronic file of the textbook or other material into a
format that is compatible with assistive technologies such as
speech synthesis software or Braille translation software.
  (4) 'Post-secondary education institution' means:
  (a) A public university listed in ORS 352.002;
  (b) A community college operated under ORS chapter 341;
  (c)   { - The - }  Oregon Health and Science University;
 { - or - }
   { +  (d) Portland State University; or + }
    { - (d) - }  { +  (e) + } An Oregon-based, generally
accredited institution of higher education.
  (5) 'Print disability' means a disability that prevents a
student from effectively utilizing print material and may include
blindness, other serious visual impairments, specific learning
disabilities or the inability to hold a book.
  (6) 'Printed instructional material' means instructional
material in book or other printed form.
  (7) 'Publisher' means any person that publishes or manufactures
instructional material used by students attending a
post-secondary education institution.
  (8) 'Structural integrity' means the inclusion of all of the
information provided in printed instructional material, including
but not limited to the text of the material sidebars, the tables
of contents, the chapter headings and subheadings, the footnotes,
the page numbers, the indexes and the glossaries.

  (9) 'Working day' means a day that is not a Saturday, Sunday or
legal holiday.
  SECTION 91. ORS 338.005, as amended by section 19, chapter 91,
Oregon Laws 2012, is amended to read:
  338.005. As used in this chapter, unless the context requires
otherwise:
  (1) 'Applicant' means any person or group that develops and
submits a written proposal for a public charter school to a
sponsor.
  (2) 'Institution of higher education' means a community college
operated under ORS chapter 341, a public university listed in ORS
352.002 { + , Portland State University + } or   { - the - }
Oregon Health and Science University.
  (3) 'Public charter school' means an elementary or secondary
school offering a comprehensive instructional program operating
under a written agreement entered into between a sponsor and an
applicant and operating pursuant to this chapter.
  (4) 'Remote and necessary school district' means a school
district that offers kindergarten through grade 12 and has:
  (a) An average daily membership (ADM), as defined in ORS
327.006, in the prior fiscal year of less than 110; and
  (b) A school that is located, by the nearest traveled road,
more than 20 miles from the nearest school or from a city with a
population of more than 5,000.
  (5) 'Sponsor' means:
  (a) The board of the common school district or the union high
school district in which the public charter school is located
that has developed a written charter with an applicant to create
a public charter school.
  (b) The State Board of Education pursuant to ORS 338.075.
  (c) An institution of higher education pursuant to ORS 338.075.
  (6)(a) 'Virtual public charter school' means a public charter
school that provides online courses.
  (b) 'Virtual public charter school' does not include a public
charter school that primarily serves students in a physical
location.
  SECTION 92. ORS 338.115, as amended by section 9, chapter 92,
Oregon Laws 2012, is amended to read:
  338.115. (1) Statutes and rules that apply to school district
boards, school districts or other public schools do not apply to
public charter schools. However, the following laws do apply to
public charter schools:
  (a) Federal law;
  (b) ORS 30.260 to 30.300 (tort claims);
  (c) ORS 192.410 to 192.505 (public records law);
  (d) ORS 192.610 to 192.690 (public meetings law);
  (e) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (f) ORS 326.565, 326.575 and 326.580 (student records);
  (g) ORS 181.534, 326.603, 326.607, 342.223 and 342.232
(criminal records checks);
  (h) ORS 329.045 (academic content standards and instruction);
  (i) ORS 329.451 (high school diploma, modified diploma,
extended diploma and alternative certificate);
  (j) The statewide assessment system developed by the Department
of Education for mathematics, science and English under ORS
329.485 (2);
  (k) ORS 337.150 (textbooks);
  (L) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (m) ORS 339.250 (12) (prohibition on infliction of corporal
punishment);
  (n) ORS 339.326 (notice concerning students subject to juvenile
court petitions);
  (o) ORS 339.370, 339.372, 339.388 and 339.400 (reporting of
abuse and sexual conduct and training on prevention and
identification of abuse and sexual conduct);
  (p) ORS chapter 657 (Employment Department Law);
  (q) ORS 659.850, 659.855 and 659.860 (discrimination);
  (r) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year;
  (s) Health and safety statutes and rules;
  (t) Any statute or rule that is listed in the charter;
  (u) ORS 339.119 (consideration for educational services); and
  (v) This chapter.
  (2) Notwithstanding subsection (1) of this section, a charter
may specify that statutes and rules that apply to school district
boards, school districts and other public schools may apply to a
public charter school.
  (3) If a statute or rule applies to a public charter school,
then the terms 'school district' and 'public school' include
public charter school as those terms are used in that statute or
rule.
  (4) A public charter school may not violate the Establishment
Clause of the First Amendment to the United States Constitution
or section 5, Article I of the Oregon Constitution, or be
religion based.
  (5)(a) A public charter school shall maintain an active
enrollment of at least 25 students.
  (b) For a public charter school that provides educational
services under a cooperative agreement described in ORS 338.080,
the public charter school is in compliance with the requirements
of this subsection if the public charter school provides
educational services under the cooperative agreement to at least
25 students, without regard to the school districts in which the
students are residents.
  (6) A public charter school may sue or be sued as a separate
legal entity.
  (7) The sponsor, members of the governing board of the sponsor
acting in their official capacities and employees of a sponsor
acting in their official capacities are immune from civil
liability with respect to all activities related to a public
charter school within the scope of their duties or employment.
  (8) A public charter school may enter into contracts and may
lease facilities and services from a school district, education
service district, public university listed in ORS 352.002,  { +
Portland State University,  + }other governmental unit or any
person or legal entity.
  (9) A public charter school may not levy taxes or issue bonds
under which the public incurs liability.
  (10) A public charter school may receive and accept gifts,
grants and donations from any source for expenditure to carry out
the lawful functions of the school.
  (11) The school district in which the public charter school is
located shall offer a high school diploma, a modified diploma, an
extended diploma or an alternative certificate to any public
charter school student who meets the district's and state's
standards for a high school diploma, a modified diploma, an
extended diploma or an alternative certificate.
  (12) A high school diploma, a modified diploma, an extended
diploma or an alternative certificate issued by a public charter
school grants to the holder the same rights and privileges as a
high school diploma, a modified diploma, an extended diploma or
an alternative certificate issued by a nonchartered public
school.
  (13) Prior to beginning operation, the public charter school
shall show proof of insurance to the sponsor as specified in the
charter.
  (14) A public charter school may receive services from an
education service district in the same manner as a nonchartered
public school in the school district in which the public charter
school is located.

  SECTION 93. ORS 338.115, as amended by section 7, chapter 839,
Oregon Laws 2007, section 12, chapter 50, Oregon Laws 2008,
section 4, chapter 618, Oregon Laws 2009, section 3, chapter 53,
Oregon Laws 2010, section 3, chapter 94, Oregon Laws 2011,
section 118, chapter 637, Oregon Laws 2011, section 5, chapter
682, Oregon Laws 2011, and section 10, chapter 92, Oregon Laws
2012, is amended to read:
  338.115. (1) Statutes and rules that apply to school district
boards, school districts or other public schools do not apply to
public charter schools. However, the following laws do apply to
public charter schools:
  (a) Federal law;
  (b) ORS 30.260 to 30.300 (tort claims);
  (c) ORS 192.410 to 192.505 (public records law);
  (d) ORS 192.610 to 192.690 (public meetings law);
  (e) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (f) ORS 326.565, 326.575 and 326.580 (student records);
  (g) ORS 181.534, 326.603, 326.607, 342.223 and 342.232
(criminal records checks);
  (h) ORS 329.045 (academic content standards and instruction);
  (i) ORS 329.451 (high school diploma, modified diploma,
extended diploma and alternative certificate);
  (j) ORS 329.496 (physical education);
  (k) The statewide assessment system developed by the Department
of Education for mathematics, science and English under ORS
329.485 (2);
  (L) ORS 337.150 (textbooks);
  (m) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (n) ORS 339.250 (12) (prohibition on infliction of corporal
punishment);
  (o) ORS 339.326 (notice concerning students subject to juvenile
court petitions);
  (p) ORS 339.370, 339.372, 339.388 and 339.400 (reporting of
abuse and sexual conduct and training on prevention and
identification of abuse and sexual conduct);
  (q) ORS chapter 657 (Employment Department Law);
  (r) ORS 659.850, 659.855 and 659.860 (discrimination);
  (s) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year;
  (t) Health and safety statutes and rules;
  (u) Any statute or rule that is listed in the charter;
  (v) ORS 339.119 (consideration for educational services); and
  (w) This chapter.
  (2) Notwithstanding subsection (1) of this section, a charter
may specify that statutes and rules that apply to school district
boards, school districts and other public schools may apply to a
public charter school.
  (3) If a statute or rule applies to a public charter school,
then the terms 'school district' and 'public school' include
public charter school as those terms are used in that statute or
rule.
  (4) A public charter school may not violate the Establishment
Clause of the First Amendment to the United States Constitution
or section 5, Article I of the Oregon Constitution, or be
religion based.
  (5)(a) A public charter school shall maintain an active
enrollment of at least 25 students.
  (b) For a public charter school that provides educational
services under a cooperative agreement described in ORS 338.080,
the public charter school is in compliance with the requirements
of this subsection if the public charter school provides
educational services under the cooperative agreement to at least
25 students, without regard to the school districts in which the
students are residents.

  (6) A public charter school may sue or be sued as a separate
legal entity.
  (7) The sponsor, members of the governing board of the sponsor
acting in their official capacities and employees of a sponsor
acting in their official capacities are immune from civil
liability with respect to all activities related to a public
charter school within the scope of their duties or employment.
  (8) A public charter school may enter into contracts and may
lease facilities and services from a school district, education
service district, public university listed in ORS 352.002,  { +
Portland State University, + } other governmental unit or any
person or legal entity.
  (9) A public charter school may not levy taxes or issue bonds
under which the public incurs liability.
  (10) A public charter school may receive and accept gifts,
grants and donations from any source for expenditure to carry out
the lawful functions of the school.
  (11) The school district in which the public charter school is
located shall offer a high school diploma, a modified diploma, an
extended diploma or an alternative certificate to any public
charter school student who meets the district's and state's
standards for a high school diploma, a modified diploma, an
extended diploma or an alternative certificate.
  (12) A high school diploma, a modified diploma, an extended
diploma or an alternative certificate issued by a public charter
school grants to the holder the same rights and privileges as a
high school diploma, a modified diploma, an extended diploma or
an alternative certificate issued by a nonchartered public
school.
  (13) Prior to beginning operation, the public charter school
shall show proof of insurance to the sponsor as specified in the
charter.
  (14) A public charter school may receive services from an
education service district in the same manner as a nonchartered
public school in the school district in which the public charter
school is located.
  SECTION 94. ORS 339.885 is amended to read:
  339.885. (1) No secret society of any kind, including a
fraternity or sorority, shall be permitted in any public school.
  (2) The district school board may order the suspension or
expulsion of any pupil who belongs to a secret society.
  (3) This section does not apply to any public university listed
in ORS 352.002  { + or to Portland State University + }.
  SECTION 95. ORS 340.005 is amended to read:
  340.005. For purposes of ORS 340.005 to 340.090:
  (1) 'Accelerated college credit program' has the meaning given
that term by rules adopted by the State Board of Education.
  (2) 'At-risk student' means:
  (a) A student who qualifies for a free or reduced lunch
program; or
  (b) An at-risk student as defined by rules adopted by the board
if the board has adopted rules to define an at-risk student.
  (3) 'Duplicate course' means a course with a scope that is
identical to the scope of another course.
  (4)(a) 'Eligible post-secondary course' means any nonsectarian
course or program offered through an eligible post-secondary
institution if the course or program may lead to high school
completion, a certificate, professional certification, associate
degree or baccalaureate degree.
  (b) 'Eligible post-secondary course' does not include a
duplicate course offered at the student's resident school.
  (c) 'Eligible post-secondary course' includes:
  (A) Academic courses;
  (B) Career and technical education courses; and
  (C) Distance education courses.
  (5) 'Eligible post-secondary institution' means:
  (a) A community college;
  (b) A public university listed in ORS 352.002;   { - and - }
  (c)   { - The - }  Oregon Health and Science University
 { - . - }  { + ; and
  (d) Portland State University. + }
  (6)(a) 'Eligible student' means a student who is enrolled in an
Oregon public school and who:
  (A) Is 16 years of age or older at the time of enrollment in a
course under the Expanded Options Program;
  (B)(i) Is in grade 11 or 12 at the time of enrollment in a
course under the Expanded Options Program; or
  (ii) Is not in grade 11 or 12, because the student has not
completed the required number of credits, but who has been
allowed by the school district to participate in the program;
  (C) Has developed an educational learning plan as described in
ORS 340.025; and
  (D) Has not successfully completed the requirements for a high
school diploma as established by ORS 329.451, the State Board of
Education and the school district board.
  (b) 'Eligible student' does not include a foreign exchange
student enrolled in a school under a cultural exchange program.
  (7) 'Expanded Options Program' means the program created under
ORS 340.005 to 340.090.
  (8) 'Scope' means depth and breadth of course content as
evidenced through a planned course statement including content
outline, applicable state content standards where appropriate,
course goals and student outcomes.
  SECTION 96. ORS 341.440 is amended to read:
  341.440. (1) A community college district may contract with
another community college district,  { + a + } common or union
high school district,  { + an + } education service district, the
Oregon University System, { +  Portland State University, + }
 { - the - }  Oregon Health and Science University,
 { - with - }  a private educational institution accredited by
the   { - Northwest Association of Schools and Colleges - }
 { + Northwest Commission on Colleges and Universities + } or its
successor { + , + } or a career school as defined in ORS
345.010 { + , + } to obtain educational services for students
enrolled in the community college of the district. However, the
educational services so obtained must meet the standards for
educational services provided by the college and the contract
price to the college for such services must not exceed the costs
 { - which - }   { + that + } would otherwise be incurred by the
college to provide its students the same or similar services.
  (2) Educational services for which a district operating a
community college may contract include services offered by
correspondence and services offered electronically or through
telecommunications if such services are accredited by a
nationally recognized accrediting association.
  (3) For purposes of ORS 341.626, costs incurred under
subsection (1) of this section shall be considered operating
expenses of the district if the contract is approved by the
Commissioner for Community College Services.
  SECTION 97. ORS 342.144 is amended to read:
  342.144. (1) As used in this section, 'American Indian tribe'
means an Indian tribe as that term is defined in ORS 97.740.
  (2) The Legislative Assembly declares that teaching American
Indian languages is essential to the proper education of American
Indian children.
  (3) The Teacher Standards and Practices Commission shall
establish an American Indian languages teaching license.
  (4) Each American Indian tribe may develop a written and oral
test that must be successfully completed by an applicant for an
American Indian languages teaching license in order to determine
whether the applicant is qualified to teach the tribe's native
language. When developing the test, the tribe shall determine:
  (a) Which dialects will be used on the test;
  (b) Whether the tribe will standardize the tribe's writing
system; and
  (c) How the teaching methods will be evaluated in the
classroom.
  (5) The test shall be administered at an appropriate location
that does not create hardship for the tribal members
administering the test.
  (6) The commission may not require an applicant to hold a
specific academic degree, to complete a specific amount of
education or to complete a teacher education program to receive
an American Indian languages teaching license.
  (7)(a) An American Indian languages teaching license qualifies
the holder to accept a teaching position in a school district,
public charter school, education service district, community
college { + , Portland State University + } or public university
listed in ORS 352.002.
  (b) A holder of an American Indian languages teaching license
who does not also have a teaching license issued under ORS
342.125 may not teach in a school district or education service
district any subject other than the American Indian language the
holder of the license is approved to teach by the tribe.
  (c) A holder of an American Indian languages teaching license
who does not also have a teaching license or registration issued
under ORS 342.125 may not teach in a public charter school any
subject other than the American Indian language the holder of the
license is approved to teach by the tribe.
  (8)(a) As used in this subsection, 'technical assistance
program' means a program provided to an American Indian languages
teacher by a licensed teacher with three or more years of
teaching experience. A technical assistance program may include
direct classroom observation and consultation, assistance in
instructional planning and preparation, support in implementation
and delivery of classroom instruction, and other assistance
intended to enhance the professional performance and development
of the American Indian languages teacher.
  (b) The holder of an American Indian languages teaching license
who does not also have an administrative license, teaching
license or registration issued under ORS 342.125 and who is
employed by a school district, public charter school or education
service district shall participate in a technical assistance
program with a person holding a teaching license issued by the
commission under ORS 342.125. The technical assistance program
shall meet the guidelines specified in ORS 329.815 (2) to (4).
  (9) An American Indian languages teaching license shall be
valid for three years and may be renewed upon application from
the holder of the license.
  SECTION 98. ORS 343.961 is amended to read:
  343.961. (1) As used in this section:
  (a) 'Day treatment program' means a public or private program
that provides treatment of children with a mental illness, an
emotional disturbance or another mental health issue.
  (b) 'Eligible day treatment program' means a day treatment
program with which the Oregon Health Authority contracts for long
term care or treatment. 'Eligible day treatment program' does not
include residential treatment programs or programs that provide
care or treatment to juveniles who are in detention facilities.
  (c) 'Eligible residential treatment program' means a
residential treatment program with which the Oregon Health
Authority, the Department of Human Services or the Oregon Youth
Authority contracts for long term care or treatment. 'Eligible
residential treatment program' does not include psychiatric day
treatment programs or programs that provide care or treatment to
juveniles who are in detention facilities.
  (d) 'Residential treatment program' means a public or private
residential program that provides treatment of children with a
mental illness, an emotional disturbance or another mental health
issue.
  (e) 'Student' means a child who is placed in an eligible day
treatment program or eligible residential treatment program by a
public or private entity or by the child's parent.
  (2) The Department of Education shall be responsible for
payment of the costs of education of students in eligible day
treatment programs and eligible residential treatment programs by
contracting with the school district in which the eligible day
treatment program or eligible residential treatment program is
located. The costs of education do not include transportation,
care, treatment or medical expenses.
  (3)(a) The school district in which an eligible day treatment
program or eligible residential treatment program is located is
responsible for providing the education of a student, including
the identification, location and evaluation of the student for
the purpose of determining the student's eligibility to receive
special education and related services.
  (b) A school district that is responsible for providing an
education under this subsection may provide the education:
  (A) Directly or through another school district or an education
service district; and
  (B) In the facilities of an eligible day treatment program or
eligible residential treatment program, the facilities of a
school district or the facilities of an education service
district.
  (c) When a student is no longer in an eligible day treatment
program or eligible residential treatment program, the
responsibilities imposed by this subsection terminate and become
the responsibilities of the school district where the student is
a resident, as determined under ORS 339.133 and 339.134.
  (4) A school district may request the Department of Education
to combine several eligible day treatment programs or eligible
residential treatment programs into one contract with another
school district or an education service district.
  (5) The Oregon Health Authority, the Department of Human
Services or the Oregon Youth Authority shall give the school
district providing the education at an eligible day treatment
program or an eligible residential treatment program 14 days'
notice, to the extent practicable, before a student is dismissed
from the program.
  (6) The Department of Education may make advances to school
districts responsible for providing an education to students
under this section from funds appropriated for that purpose based
on the estimated agreed cost of educating the students per school
year.  Advances equal to 25 percent of the estimated cost may be
made on September 1, December 1 and March 1 of the current year.
The balance may be paid whenever the full determination of cost
is made.
  (7) School districts that provide the education described in
this section on a year-round plan may apply for 25 percent of the
funds appropriated for that purpose on July 1, October 1, January
1, and 15 percent on April 1. The balance may be paid whenever
the full determination of cost is made.
  (8) In addition to the payment methods described in this
section, the Department of Education may:
  (a) Negotiate interagency agreements to pay for the cost of
education in day treatment programs and residential treatment
programs operated under the auspices of the State Board of Higher
Education; and
  (b) Negotiate intergovernmental agreements to pay for the cost
of education in day treatment programs and residential treatment
programs operated under the auspices of the   { - Oregon Health
and Science University - }  { +  Portland Metropolitan
Universities + } Board of Directors.
  SECTION 99. ORS 344.557 is amended to read:
  344.557. (1) The Department of Human Services may refer a
person for vocational training only to the following schools or
programs:
  (a) A school that has accreditation recognized by the United
States Department of Education.
  (b) A school that has been approved by the Higher Education
Coordinating Commission to offer and confer degrees in Oregon.
  (c) A community college.
  (d) A public university listed in ORS 352.002.
  (e)   { - The - }  Oregon Health and Science University.
   { +  (f) Portland State University. + }
    { - (f) - }  { +  (g) + } A career school licensed under ORS
345.010 to 345.450.
    { - (g) - }   { + (h) + } An apprenticeship program that is
registered with the State Apprenticeship and Training Council.
  (2) This section does not apply to vocational rehabilitation
training.
  SECTION 100. ORS 348.180 is amended to read:
  348.180. As used in this section and ORS 348.186, 348.205,
348.230, 348.250, 348.260 and 348.285:
  (1) 'Cost of education' includes but is not limited to,
tuition, fees and living expenses.
  (2) 'Eligible post-secondary institution' means:
  (a) A public university listed in ORS 352.002;
  (b) A community college operated under ORS chapter 341;
  (c)   { - The - }  Oregon Health and Science University;
 { - or - }  { +
  (d) Portland State University; or + }
    { - (d) - }  { +  (e) + } An Oregon-based, generally
accredited, not-for-profit institution of higher education.
  (3) 'Qualified student' means any resident student who plans to
attend an eligible post-secondary institution and who:
  (a) Has not achieved a baccalaureate or higher degree from any
post-secondary institution;
  (b) Is enrolled in an eligible program as defined by rule of
the Oregon Student Access Commission; and
  (c) Is making satisfactory academic progress as defined by rule
of the commission.
  SECTION 101. ORS 348.205 is amended to read:
  348.205. (1) The Oregon Opportunity Grant program is
established within the Oregon Student Access Commission.
  (2) Under the program, the cost of education of a qualified
student shall be shared by the student, the family of the
student, the federal government and the state.
  (3) The commission shall determine the cost of education of a
qualified student based on the type of eligible post-secondary
institution the student is attending. The cost of education
equals:
  (a) For a student attending a community college, the average
cost of education of attending a community college in this state;
  (b) For a student attending a public university under the
direction of the State Board of Higher Education, the average
cost of education of attending a public university under the
direction of the board;
  (c) For a student attending a two-year Oregon-based, generally
accredited, not-for-profit institution of higher education, the
average cost of education of attending a community college in
this state; and
  (d) For a student attending   { - the - }  Oregon Health and
Science University { + , Portland State University + } or a
four-year Oregon-based, generally accredited, not-for-profit
institution of higher education, the average cost of education of
attending an institution under the direction of the board.
  (4)(a) The commission shall determine the amount of the student
share. The student share shall be based on:

  (A) The type of eligible post-secondary institution the student
is attending;
  (B) The number of hours of work that the commission determines
may be reasonably expected from the student; and
  (C) The amount of loans that the commission determines would
constitute a manageable debt burden for the student.
  (b) The student shall determine how to cover the student share
through income from work, loans, savings and scholarships.
  (c) The student share for a student who attends a community
college may not exceed the amount that the commission determines
a student may earn based on the number of hours of work
reasonably expected from the student under paragraph (a) of this
subsection.
  (d) The student share for a student who attends an eligible
post-secondary institution that is not a community college may
not exceed the sum of the amount that the commission determines a
student may receive as loans plus the amount a student may earn
based on the number of hours of work reasonably expected from the
student under paragraph (a) of this subsection.
  (5) The commission shall determine the amount of the family
share. The family share shall be based on the resources of the
family.
  (6) The commission shall determine the amount of the federal
share based on how much the student or the student's family is
expected to receive from the federal government as grants, loans,
tax credits or other student assistance.
  (7)(a) The commission shall determine the amount of the state
share. The state share shall be equal to the cost of education
reduced by the student share, family share and amount received by
the student from the federal government.
  (b) The commission shall establish a minimum amount that a
student may receive as a state share. If the commission
determines that the amount of the state share of a student is
below the minimum amount, the student may not receive the state
share.
  (c) In determining the amount of the state share, the
commission shall consider the total amount available to award as
grants to all qualified students. If the commission must reduce
the amount of the state share under this paragraph, the
commission may not reduce the amount of the state share awarded
to students in the low income range in a greater proportion than
the amount that the state share for students in other income
ranges is reduced.
  (8)(a) The commission shall adopt rules that prioritize current
foster children and former foster children for receiving Oregon
Opportunity Grants when the Oregon Opportunity Grant program does
not have sufficient funding to serve all eligible Oregon
students.
  (b) For the purposes of this subsection, 'former foster child'
has the meaning given that term in ORS 351.293.
  SECTION 102. ORS 348.210 is amended to read:
  348.210. (1) In addition to any other scholarships provided by
law, the Oregon Student Access Commission may award scholarships
at Eastern Oregon University to resident undergraduate students
applying for enrollment in the university or who are pursuing
courses therein. The number of students who receive scholarships
under this subsection may not exceed two and one-half percent of
the number of students who are enrolled at the university. The
scholarships shall be awarded upon the basis of a record of high
intellectual standing and deportment in the school or institution
where the applicant has received or is receiving preparatory
training, the necessity for financial assistance and other
qualifications of such nature that the awarding of scholarships
will operate not only to the advantage of the applicant but to
the people of Oregon. A scholarship awarded under this subsection
may not exceed in value the amount of the tuition and other fees,
including the fees that are levied against the recipient of the
scholarship by the State Board of Higher Education at the
university.
  (2) The commission may award tuition and fee-exempting
scholarships to students from foreign nations who are enrolled in
public universities listed in ORS 352.002 { +  or Portland State
University + }. A student may not receive a scholarship under
this subsection that exceeds the amount of tuition and fees owed
by the student.
  (3) The value of scholarships awarded each year under
subsection (2) of this section may not exceed in aggregate an
amount equal to 10 percent of the amount of tuition and fees paid
in the preceding year to the Oregon University System by students
enrolled in public universities listed in ORS 352.002 who were
not Oregon residents.
  SECTION 103. ORS 348.270 is amended to read:
  348.270. (1) In addition to any other scholarships provided by
law, the  { + Oregon Student Access + } Commission shall award
scholarships in any public university listed in ORS 352.002, { +
in Portland State University, + } in   { - the - }  Oregon Health
and Science University, in any community college operated under
ORS chapter 341, or in any Oregon-based regionally accredited
independent institution, to any student applying for enrollment
or who is enrolled therein, who is:
  (a) The natural child, adopted child or stepchild of any public
safety officer who, in the line of duty, was killed or so
disabled, as determined by the commission, that the income of the
public safety officer is less than that earned by public safety
officers performing duties comparable to those performed at the
highest rank or grade attained by the public safety officer; or
  (b) A current foster child or former foster child who enrolls
in an institution of higher education as an undergraduate student
not later than three years from the date the student was removed
from the care of the Department of Human Services, the date the
student graduated from high school or the date the student
received the equivalent of a high school diploma, whichever date
is earliest.
  (2) Scholarships awarded under this section to students who are
dependents of public safety officers or who are current foster
children or former foster children shall equal the amount of
tuition and all fees levied by the institution against the
recipient of the scholarship. However, scholarships awarded to
students who attend independent institutions   { - shall - }
 { + or Portland State University may + } not exceed the amount
of tuition and all fees levied by the University of Oregon.
  (3) If the student who is the dependent of a deceased public
safety officer continues to remain enrolled in a public
university listed in ORS 352.002 { + , Portland State
University + } or a community college or an independent
institution within the State of Oregon, the student   { - shall
be - }  { +  is + } entitled to renewal of the scholarship until
the student has received the equivalent of four years of
undergraduate education and four years of post-graduate
education.
  (4) If the student who is a current foster child or former
foster child or who is the dependent of a public safety officer
with a disability continues to remain enrolled in a public
university listed in ORS 352.002 { + , Portland State
University + } or a community college or an independent
institution within the State of Oregon, the student   { - shall
be - }  { +  is + } entitled to renewal of the scholarship until
the student has received the equivalent of four years of
undergraduate education.
  (5) The commission may require proof of the student's
relationship to a public safety officer described in subsection

(1) of this section or proof that the student is a current foster
child or former foster child.
  (6) As used in this section:
  (a) 'Former foster child' means an individual who, for a total
of 12 or more months while between the ages of 16 and 21, was a
ward of the court pursuant to ORS 419B.100 (1)(b) to (e) and in
the legal custody of the Department of Human Services for
out-of-home placement.
  (b) 'Public safety officer' means:
  (A) A firefighter or police officer as those terms are defined
in ORS 237.610.
  (B) A member of the Oregon State Police.
  (C) A police officer commissioned by a university under ORS
352.383.
  (D) An authorized tribal police officer as defined in section
1, chapter 644, Oregon Laws 2011.
  SECTION 104. ORS 348.270, as amended by section 51, chapter
644, Oregon Laws 2011, is amended to read:
  348.270. (1) In addition to any other scholarships provided by
law, the  { + Oregon Student Access + } Commission shall award
scholarships in any public university listed in ORS 352.002,
 { +  Portland State University, + } in   { - the - }  Oregon
Health and Science University, in any community college operated
under ORS chapter 341  { - , - }  or in any Oregon-based
regionally accredited independent institution, to any student
applying for enrollment or who is enrolled therein, who is:
  (a) The natural child, adopted child or stepchild of any public
safety officer who, in the line of duty, was killed or so
disabled, as determined by the commission, that the income of the
public safety officer is less than that earned by public safety
officers performing duties comparable to those performed at the
highest rank or grade attained by the public safety officer; or
  (b) A current foster child or former foster child who enrolls
in an institution of higher education as an undergraduate student
not later than three years from the date the student was removed
from the care of the Department of Human Services, the date the
student graduated from high school or the date the student
received the equivalent of a high school diploma, whichever date
is earliest.
  (2) Scholarships awarded under this section to students who are
dependents of public safety officers or who are current foster
children or former foster children shall equal the amount of
tuition and all fees levied by the institution against the
recipient of the scholarship. However, scholarships awarded to
students who attend independent institutions   { - shall - }
 { + or Portland State University may + } not exceed the amount
of tuition and all fees levied by the University of Oregon.
  (3) If the student who is the dependent of a deceased public
safety officer continues to remain enrolled in a public
university listed in ORS 352.002 { + , Portland State
University + } or a community college or an independent
institution within the State of Oregon, the student   { - shall
be - }  { +  is + } entitled to renewal of the scholarship until
the student has received the equivalent of four years of
undergraduate education and four years of post-graduate
education.
  (4) If the student who is a current foster child or former
foster child or who is the dependent of a public safety officer
with a disability continues to remain enrolled in a public
university listed in ORS 352.002 { + , Portland State
University + } or a community college or an independent
institution within the State of Oregon, the student   { - shall
be - }  { +  is + } entitled to renewal of the scholarship until
the student has received the equivalent of four years of
undergraduate education.

  (5) The commission may require proof of the student's
relationship to a public safety officer described in subsection
(1) of this section or proof that the student is a current foster
child or former foster child.
  (6) As used in this section:
  (a) 'Former foster child' means an individual who, for a total
of 12 or more months while between the ages of 16 and 21, was a
ward of the court pursuant to ORS 419B.100 (1)(b) to (e) and in
the legal custody of the Department of Human Services for
out-of-home placement.
  (b) 'Public safety officer' means:
  (A) A firefighter or police officer as those terms are defined
in ORS 237.610.
  (B) A member of the Oregon State Police.
  (C) A police officer commissioned by a university under ORS
352.383.
  SECTION 105. ORS 348.394 is amended to read:
  348.394. As used in ORS 348.394 to 348.406:
  (1) 'Eligible post-secondary institution' means:
  (a) A public university listed in ORS 352.002;
  (b) A community college as defined in ORS 341.005;   { - or - }

   { +  (c) Portland State University; or + }
    { - (c) - }  { +  (d) + } A generally accredited,
not-for-profit institution of higher education.
  (2) 'Participant' means a student who receives a grant under
ORS 348.401.
  SECTION 106. ORS 348.597 is amended to read:
  348.597. (1) Except as provided in subsection (2) of this
section, ORS 348.594 to 348.615 apply to all schools that operate
in this state.
  (2) ORS 348.594 to 348.615 do not apply to:
  (a) An Oregon community college;
  (b) A public university listed in ORS 352.002;
  (c)   { - The - }  Oregon Health and Science University;
   { +  (d) Portland State University; + }
    { - (d) - }  { +  (e) + } A school, or a separately
accredited campus of a school, if the school:
  (A) Is a nonprofit school that is exempt from federal income
tax under section 501(c)(3) of the Internal Revenue Code;
  (B) Conferred degrees in this state under the same control for
at least five consecutive years; and
  (C) Is accredited by a regional accrediting association or its
national successor;
    { - (e) - }  { +  (f) + } A school that, on July 14, 2005,
was a school that met the criteria and followed procedures to
obtain a religious exemption adopted by rule by the Oregon
Student Access Commission and that offered only degrees with
approved titles in theology or religious occupations; or
    { - (f) - }  { +  (g) + } A school that is exempt from ORS
348.594 to 348.615 under ORS 348.604.
  (3) The Higher Education Coordinating Commission shall issue a
separate license to issue degrees to each school that meets the
requirements for exemption from evaluation by the office set
forth in subsection   { - (2)(d) - }  { +  (2)(e) + } of this
section. The license shall remain in effect if the school
continues to meet the requirements of subsection   { - (2)(d) - }
 { +  (2)(e) + } of this section.
  SECTION 107. ORS 348.900 is amended to read:
  348.900. (1) The Employment Department, in consultation with
health care industry employers, shall perform a statewide and
regional needs assessment for health care occupations to identify
emerging occupations and occupations for which there is high
demand or a shortage of workers. The assessment shall be
performed as necessary on a periodic basis, as determined by the
department, in consultation with industry employers. To perform
the needs assessment, the department may consider any reliable
data sources available to the department.
  (2) Based on the needs assessment, the Higher Education
Coordinating Commission shall inform the community colleges,
public universities listed in ORS 352.002, { +  Portland State
University, + } Oregon Health and Science University and health
care industry employers of the identified statewide needs and
invite the development of health care education programs that are
responsive to those needs.
  (3) When approving health care education programs, the State
Board of Education, the State Board of Higher Education and the
  { - Oregon Health and Science University - }  { +  Portland
Metropolitan Universities + } Board of Directors shall use the
statewide needs assessment to evaluate whether a program fulfills
statewide needs.  If a board determines there is a statewide
need, the board shall facilitate the:
  (a) Coordination of new health care education programs and
existing health care education programs that are similar to the
new health care education programs to address the statewide need;
and
  (b) Alignment of health care education programs relating to
statewide access, student transferability between programs,
course articulation and common student learning outcomes for
health care education programs.
  (4) In the development and approval of health care education
programs, community colleges, public universities { +  listed in
ORS 352.002, Portland State University + }, Oregon Health and
Science University, the State Board of Education, the State Board
of Higher Education and the   { - Oregon Health and Science
University - }  { +  Portland Metropolitan Universities + } Board
of Directors shall consider issues related to statewide access,
student transferability between programs, course articulation and
common student learning outcomes for health care education
programs. The community colleges, public universities,
 { + Portland State University, + } Oregon Health and Science
University and boards shall continue to provide and improve upon
an effective articulation and transfer framework for students in
Oregon's post-secondary sectors.
  SECTION 108. ORS 351.015 is amended to read:
  351.015. The Oregon University System shall be conducted under
the control of a board of 15 directors, to be known as the State
Board of Higher Education. Except as otherwise provided by law,
the board has sole authority to govern, set policy and otherwise
manage the affairs of the public universities listed in ORS
352.002. The board shall consist of:
  (1) Two students who at the time of their appointment to the
board are attending different public universities listed in ORS
352.002.
  (2) One member of the faculty at Oregon State University  { - ,
Portland State University - }  or University of Oregon.
  (3) One member of the faculty at Eastern Oregon University,
Oregon Institute of Technology, Southern Oregon University or
Western Oregon University.
  (4) Eleven members of the general public who are not students
or faculty members at the time of appointment.
  SECTION 109. ORS 351.203 is amended to read:
  351.203. (1) The State Board of Higher Education shall
cooperate with the Education and Workforce Policy Advisor in the
development of a state comprehensive education plan including
post-secondary education and in review of the board's programs
and budget. The board shall submit in timely fashion to the
advisor such data as is appropriate in a form prescribed by the
advisor.
  (2) The board shall cooperate with the mediation process
administered by the Higher Education Coordinating Commission
pursuant to ORS 348.603 and, if a negotiated resolution cannot be
reached by mediation, comply with the decisions of the commission
regarding proposed new post-secondary programs and proposed new
post-secondary locations, including those proposed by Oregon
Health and Science University { +  and Portland State
University + } in cooperation with the State Board of Higher
Education under ORS 353.440.
  SECTION 110. ORS 351.293 is amended to read:
  351.293. (1) Notwithstanding ORS 341.290, 351.070 (3) or
353.050, a current foster child or former foster child under 25
years of age who enrolls in an institution of higher education as
an undergraduate student not later than three years after the
date the student was removed from the care of the Department of
Human Services, the date the student graduated from high school
or the date the student received the equivalent of a high school
diploma, whichever date is earliest, shall have the amount of
tuition and all fees levied against the student waived if
attending an institution of higher education   { - listed in ORS
352.002, a community college operated under ORS chapter 341 or
Oregon Health and Science University - }  for purposes of
pursuing an initial undergraduate degree.
  (2) A student who is a current foster child or former foster
child is entitled to waiver of tuition and all fees under
subsection (1) of this section until the student has received the
equivalent of four years of undergraduate education.
  (3) As a condition of receiving a tuition waiver for an
academic year, a current foster child or former foster child
must:
  (a) Complete and submit the Free Application for Federal
Student Aid for that academic year; and
  (b) For years after the first academic year at an institution
of higher education, have completed a minimum of 30 volunteer
service hours in the previous academic year performing community
service activities such as mentoring foster youth or assisting in
the provision of peer support service activities, according to
policies developed by the institution of higher education at
which the current foster child or former foster child is
enrolled.
  (4) A waiver of tuition and all fees under subsection (1) of
this section may be reduced by the amount of any federal aid
scholarships or grants, an award from the Oregon Opportunity
Grant program established under ORS 348.205 and any other aid
received from the institution of higher education. For the
purposes of this subsection, 'federal aid scholarships or grants'
does not include Chafee Education and Training Grant vouchers
(P.L.  107-133).
  (5) As used in this section  { - , - }  { + : + }
   { +  (a) + } 'Former foster child' means an individual who,
for a total of 12 or more months while between 16 and 21 years of
age, was a ward of the court pursuant to ORS 419B.100 (1)(b) to
(e) and in the legal custody of the Department of Human Services
for out-of-home placement.
   { +  (b) 'Institution of higher education' means:
  (A) A public university listed in ORS 352.002;
  (B) A community college operated under ORS chapter 341;
  (C) Portland State University; or
  (D) The Oregon Health and Science University. + }
  SECTION 111. ORS 351.296 is amended to read:
  351.296. (1) As used in this section,   { -  ' state - }   { +
' + } institution of higher learning' means:
  (a) A   { - state institution of higher education - }
 { + public university + } listed in ORS 352.002;
  (b) A community college operated under ORS chapter 341;
 { - or - }
   { +  (c) Portland State University; or + }
    { - (c) - }   { + (d) + } Oregon Health and Science
University.
  (2)   { - A state institution of higher learning - }   { + An
institution of higher education + } shall allow members and
agents of the Armed Forces of the United States to recruit on a
public campus and shall set rules and standards for such
recruitment that are the same as for all other employment
recruitment activities allowed on the campus.
  SECTION 112. Section 13, chapter 761, Oregon Laws 2007, as
amended by section 5, chapter 2, Oregon Laws 2009, section 93,
chapter 762, Oregon Laws 2009, and section 32, chapter 2, Oregon
Laws 2011, is amended to read:
   { +  Sec. 13. + } (1) There is established in the General Fund
an account to be known as the Portland State University Science
Research and Teaching Center and Hazardous Waste Facility
Account.  Funds in the account shall be used for the acquisition,
construction, remodeling, expansion and renovation of facilities
for a Science Research and Teaching Center and Hazardous Waste
Facility Phase I at Portland State University.
  (2) The account shall consist of proceeds from certificates of
participation, grant funds, gift funds, proceeds of legal
settlements, federal and local government funds made available to
and funds donated to the Oregon University System  { + or the
Portland Metropolitan Universities Board of Directors + } for the
purpose of the center and facility project described in
subsection (1) of this section. Interest earned on moneys in the
account shall be credited to the account. The account may not be
credited with more than $7,000,000 for purposes of this
subsection.
  (3) Moneys in the account are continuously appropriated to the
Oregon University System and may be transferred to the account
designated by ORS 351.626 for the center and facility project
described in subsection (1) of this section.
  SECTION 113. Section 17, chapter 761, Oregon Laws 2007, as
amended by section 97, chapter 762, Oregon Laws 2009, and section
36, chapter 2, Oregon Laws 2011, is amended to read:
   { +  Sec. 17. + } (1) There is established in the General Fund
an account to be known as the Portland State University Science
PCAT Redevelopment Account. Funds in the account shall be used
for the acquisition, construction, remodeling, expansion and
renovation of facilities on the current site of the Portland
Center for Advanced Technology at Portland State University.
  (2) The account shall consist of grant funds, gift funds,
proceeds of legal settlements, federal and local government funds
made available to and funds donated to the Oregon University
System  { + or the Portland Metropolitan Universities Board of
Directors + } for the purpose of the project described in
subsection (1) of this section. Interest earned on moneys in the
account shall be credited to the account. The account may not be
credited with more than $10,000,000 for purposes of this
subsection.
  (3) Moneys in the account are continuously appropriated to the
Oregon University System and may be transferred to the account
designated by ORS 351.626 for the project described in subsection
(1) of this section.
  SECTION 114. Section 22, chapter 904, Oregon Laws 2009, as
amended by section 50, chapter 2, Oregon Laws 2011, and section
46, chapter 9, Oregon Laws 2011, is amended to read:
   { +  Sec. 22. + } (1) There is established in the General Fund
an account to be known as the Portland State University Science
Research and Teaching Center/Hazardous Waste Facility Phase 2
Project Account. Funds in the account shall be used for the
acquisition, construction, remodeling, expansion and renovation
of facilities for a facility project at Oregon State University.
  (2) The account shall consist of proceeds from grant funds,
gift funds and federal and local government funds made available
to the Oregon University System { +  or the Portland Metropolitan
Universities Board of Directors + } for the purpose of the
facility project described in subsection (1) of this section.
Interest earned on moneys in the account shall be credited to the
account.  The account may not be credited with more than
$2,500,000 for purposes of this subsection.
  (3) Moneys in the account are continuously appropriated to the
Oregon University System and may be transferred to the account
designated by ORS 351.626 for the facility project described in
subsection (1) of this section.
  SECTION 115. ORS 351.509 is amended to read:
  351.509. (1) There is established in the General Fund an
account to be known as the Portland State University Center for
Nanoscience and Nanotechnology Account. Funds in the account
shall be used for the acquisition and expansion of microscopy and
materials characterization facilities at Portland State
University related to a signature research center.
  (2) The account shall consist of proceeds from lottery bonds
made available to the Oregon University System { +  or the
Portland Metropolitan Universities Board of Directors + } for the
purpose of the Portland State University center for nanoscience
and nanotechnology project described in subsection (1) of this
section. Interest earned on moneys in the account shall be
credited to the account.
  (3) Moneys in the account are continuously appropriated to the
Oregon University System for the center for nanoscience and
nanotechnology project described in subsection (1) of this
section. The account may not be credited with more than $500,000
in interest and proceeds from lottery bonds.
  SECTION 116. ORS 351.511 is amended to read:
  351.511. (1) There is established in the General Fund an
account to be known as the Portland State University Northwest
Engineering Science Center Phase I Account. Funds in the account
shall be used for acquisition or construction of an engineering
science center at Portland State University.
  (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System  { + or the Portland Metropolitan Universities
Board of Directors + } for the purpose of the Portland State
University Northwest Engineering Science Center Phase I project
described in subsection (1) of this section. Interest earned on
moneys in the account shall be credited to the account.
  (3) Moneys in the account are continuously appropriated to the
Oregon University System for the purposes described in subsection
(1) of this section. The account may not be credited with more
than $26,500,000 in interest, donations and federal and local
government funds for purposes of this subsection.
  SECTION 117. ORS 351.649 is amended to read:
  351.649. (1) For the purposes of this section:
  (a) 'Public institution of higher education' means:
  (A) A community college;
  (B) A public university listed in ORS 352.002;   { - and - }
  (C) The Oregon Health and Science University  { - . - }  { + ;
and
  (D) Portland State University. + }
  (b) 'School-sponsored media' means materials that are prepared,
substantially written, published or broadcast by student
journalists, that are distributed or generally made available,
either free of charge or for a fee, to members of the student
body and that are prepared under the direction of a student media
adviser. 'School-sponsored media' does not include media intended
for distribution or transmission solely in the classrooms in
which they are produced.
  (c) 'Student journalist' means a student who gathers, compiles,
writes, edits, photographs, records or prepares information for
dissemination in school-sponsored media.
  (d) 'Student media adviser' means a person who is employed,
appointed or designated by a public institution of higher
education to supervise, or provide instruction relating to,
school-sponsored media.
  (2) Student journalists are responsible for determining the
news, opinion, feature and advertising content of
school-sponsored media. This subsection does not prevent a
student media adviser from teaching professional standards of
English and journalism to the student journalists.
  (3) Nothing in this section may be interpreted to authorize
expression by students that:
  (a) Is libelous or slanderous;
  (b) Constitutes an unwarranted invasion of privacy;
  (c) Violates federal or state statutes, rules or regulations or
state common law; or
  (d) So incites students as to create a clear and present danger
of:
  (A) The commission of unlawful acts on or off school premises;
  (B) The violation of school policies; or
  (C) The material and substantial disruption of the orderly
operation of the school. A school official must base a forecast
of material and substantial disruption on specific facts,
including past experience in the school and current events
influencing student behavior, and not on undifferentiated fear or
apprehension.
  (4) Any student enrolled in a public institution of higher
education may commence a civil action to obtain damages under
this subsection and appropriate injunctive or declaratory relief
as determined by a court for a violation of subsection (2) of
this section, the First Amendment to the United States
Constitution or section 8, Article I of the Oregon Constitution.
Upon a motion, a court may award $100 in damages and injunctive
and declaratory relief to a prevailing plaintiff in a civil
action brought under this subsection.
  SECTION 118. ORS 351.656 is amended to read:
  351.656. (1) As used in this section:
  (a) 'Child' means a child, adopted child or stepchild of a
service member.
  (b) 'Eligible post-secondary institution' means:
  (A) A public university listed in ORS 352.002;   { - and - }
  (B) The Oregon Health and Science University  { - . - }  { + ;
and
  (C) Portland State University. + }
  (c) 'Qualified student' means a child, a spouse or an
unremarried surviving spouse of a service member.
  (d) 'Service member' means a person who:
  (A) As a member of the Armed Forces of the United States, died
on active duty;
  (B) As a member of the Armed Forces of the United States, died
as a result of a military service connected disability; or
  (C) Is 100 percent disabled as the result of a military service
connected disability, as certified by the United States
Department of Veterans Affairs or any branch of the Armed Forces
of the United States.
  (2) Subject to subsections (3) to (6) of this section, an
eligible post-secondary institution shall waive tuition for a
qualified student for courses that may lead to a baccalaureate
degree or a master's degree. A qualified student who received a
tuition waiver for a baccalaureate degree may also qualify for a
tuition waiver for a master's degree.
  (3)(a) The maximum waiver granted under this section shall be
as follows:
  (A) For a baccalaureate degree, the total number of credit
hours that equals four years of full-time attendance at an
eligible post-secondary institution.
  (B) For a master's degree, the total number of credit hours
that equals two years of full-time attendance at an eligible
post-secondary institution.
  (b) Notwithstanding paragraph (a) of this subsection, a waiver
may not exceed the total number of credit hours the qualified
student needs to graduate with a baccalaureate degree or a
master's degree.
  (4) A waiver may be granted under this section only for credit
hours for courses that are offered by an eligible post-secondary
institution and are available for enrollment regardless of
whether the qualified student attends the course and pays
tuition.
  (5) A qualified student may receive a waiver under this section
if the student:
  (a) At the time of application for a waiver, is considered a
resident of this state for the purpose of determining tuition to
be paid at an eligible post-secondary institution; and
  (b) Has been admitted to an eligible post-secondary institution
for a baccalaureate degree program or has been admitted to a
master's degree program at an eligible post-secondary
institution.
  (6)(a) A child who applies for a waiver under this section must
be 23 years of age or younger at the time the child applies for a
waiver.
  (b) Notwithstanding paragraph (a) of this subsection, a child
who is older than 23 years of age is eligible for a waiver for a
master's degree if the child:
  (A) Applied for and received a waiver for a baccalaureate
degree when the child was 23 years of age or younger; and
  (B) Applied for a waiver for a master's degree within 12 months
of receiving a baccalaureate degree.
  SECTION 119. ORS 351.663 is amended to read:
  351.663. (1) The Engineering and Technology Industry Council is
established. A majority of the council members are
representatives of high technology companies in Oregon. The
council shall be consulted on the work plans and resource
allocations for engineering education.
  (2) The council shall establish criteria and measurements that
will be used for determining investments made from the account
designated by ORS 351.666.
  (3) The criteria and measurements established by the council
include:
  (a) Responding to the urgent engineering educational needs of
Oregon's fast growing high technology industry, especially in the
Portland metropolitan area.
  (b) Increasing this state's faculty and program capacity to
meet the graduate level, professional education needs of
engineers working in Oregon's high technology industry through
investments in public and private institutions.
  (c) Creating additional opportunities for Oregonians to pursue
education in electrical engineering, computer engineering and
other engineering disciplines critical to the advancement of
Oregon's high technology industry.
  (d) Investing relatively scarce state financial resources to:
  (A) Address the high technology industry's most demonstrated
and pressing needs;
  (B) Produce the greatest amount of educational benefits with
the least short-term and long-term costs to the public;
  (C) Avoid duplicating existing public or private resources; and
  (D) Leverage existing and future private resources for the
public benefit.
  (e) Making all investments in public and private institutions
through performance-based contracts with measurable outcomes in
order to ensure strong linkage between the most urgent
engineering education needs and implemented solutions.
  (f) Maximizing the leverage of state investment funds to build
faculty and program capacity and share existing and new faculty
and program resources.

  (4) Priority is given to investments where private financial
resources from Oregon high technology companies or individuals
with significant interests in the growth of high technology in
Oregon are made available to augment public funds.
  (5) The council must submit biennial performance reviews of all
investments made to improve engineering education with public
funds in public and private institutions. The reviews must be
submitted to the Chancellor of the Oregon University
System { + , + }   { - and - } the State Board of Higher
Education { +  and the Portland Metropolitan Universities Board
of Directors + }.
  SECTION 120. ORS 351.666 is amended to read:
  351.666. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
investments in engineering education. Interest earned on moneys
in the account is credited to the account.
  (2) The State Board of Higher Education shall use the moneys in
the account designated by this section solely for the purpose of
investing in engineering education. The board shall follow the
criteria and measurements established by the Engineering and
Technology Industry Council in allocating moneys for investments
in engineering education.
   { +  (3) The State Board of Higher Education may allocate
moneys for investments in engineering education, subject to the
criteria and measurements established by the Engineering and
Technology Industry Council, to investments in engineering
education at Portland State University. + }
  SECTION 121. ORS 351.695 is amended to read:
  351.695. (1) A university within the Oregon University System
may deposit moneys received for its university venture
development fund in the Higher Education Donation Fund
established under ORS 351.130.
  (2) Notwithstanding ORS 351.697 (5), the State Treasurer, as
payment for expenses, may deduct a fee pursuant to ORS 293.718
from a university venture development fund administered by a
university within the Oregon University System { + , Portland
State University + } or   { - the - }  Oregon Health and Science
University.
  (3) A university within the Oregon University System { + ,
Portland State University + } or   { - the - }  Oregon Health and
Science University may direct that moneys credited to its
university venture development fund be held and invested by the
university's affiliated foundation. Any moneys held by an
affiliated foundation under this section or ORS 351.697 are not
subject to the provisions of ORS chapter 293 or 295 and may not
be considered public or state funds for any purpose. Moneys
transferred to an affiliated foundation under this section or ORS
351.697 may be used only as provided under ORS 351.692, 351.695,
351.697 and 353.445.
  (4) At the request of a university within the Oregon University
System, moneys in the Higher Education Donation Fund that were
deposited by the university under this section may be transferred
to the university's affiliated foundation.
  (5) A university within the Oregon University System { + ,
Portland State University + } or   { - the - }  Oregon Health and
Science University may retain or may elect to have its affiliated
foundation retain some or all of the principal contributed to a
university venture development fund for investment to perpetuate
and increase the moneys available for expenditure. The balance of
the fund and the earnings on that balance may be used as provided
under ORS 351.692, 351.695, 351.697 and 353.445.
  SECTION 122. ORS 351.697 is amended to read:
  351.697. (1) Each university in the Oregon University
System { + , Portland State University + } and Oregon Health and
Science University may elect to establish a university venture
development fund as provided in this section for the purpose of
facilitating the commercialization of university research and
development. A university shall direct that the university
venture development fund be administered, in whole or in part, by
the university or by the university's affiliated foundation.
  (2) The purposes of a university venture development fund are
to provide:
  (a) Capital for university entrepreneurial programs;
  (b) Opportunities for students to gain experience in applying
research to commercial activities;
  (c) Proof-of-concept funding for transforming research and
development concepts into commercially viable products and
services;
  (d) Entrepreneurial opportunities for persons interested in
transforming research into viable commercial ventures that create
jobs in this state; and
  (e) Tax credits for contributors to university research
commercialization activities.
  (3) Each university that elects to establish a university
venture development fund shall:
  (a) Notify the Department of Revenue of the establishment of
the fund;
  (b) Either directly or through its affiliated foundation,
solicit contributions to the fund and receive, manage and
disburse moneys contributed to the fund;
  (c) Subject to ORS 315.521 (1), 351.692 (3) and 353.445 (3),
issue tax credit certificates to contributors to the fund in the
amount of the contributions;
  (d) Establish a grant program that meets the requirements for a
venture grant program under policies adopted by the State Board
of Higher Education under ORS 351.692 or under policies adopted
by the   { - Oregon Health and Science University - }  { +
Portland Metropolitan Universities + } Board of Directors under
ORS 353.445; and
  (e) Subject to available moneys from the fund, provide
qualified grant applicants with moneys for the purpose of
facilitating the commercialization of university research and
development.
  (4) Except as provided in subsection (5) of this section,
moneys in a university venture development fund shall be
disbursed only as directed by a university.
  (5) A university or its affiliated foundation may charge its
customary administrative assessment to manage its university
venture development fund in an amount not to exceed three percent
of the fund's average balance during the fiscal year of the
university or its affiliated foundation. The administrative
assessment may be paid from the assets in the fund. Except as
authorized by law, no other fees or indirect costs shall be
charged against the university venture development fund or any
associated grants or other disbursements from the fund.
  (6) A university that has established a university venture
development fund shall monitor the use of grants made from the
fund and identify the income realized by the university as the
result of the use of the grants. Income consists of cash realized
from royalties, milestone and license fee payments and cash from
the sale of equity. The university shall cause the transfer of 20
percent of the income realized from the grants to the General
Fund, but not to exceed the amount of the tax credits issued by
the university as a result of contributions to its university
venture development fund. Immediately upon deposit of the
transferred amount into the General Fund, the university may
issue new tax credits to equal the transferred amount.
  (7) A university that has established a university venture
development fund shall report annually to the Legislative
Assembly or, if the Legislative Assembly is not in session, to
the interim legislative committees on revenue. The report shall
be at the end of the fiscal year of the university or of its
affiliated foundation and provide information for that fiscal
year. The university shall include in the report the following
information pertaining to its university venture development
fund:
  (a) The amount of donations received for the fund;
  (b) The amount of income received from the fund;
  (c) The amount of disbursements and grants paid from the fund;
  (d) The amount of income and royalties received from
disbursements from the fund; and
  (e) The amount of moneys transferred from the fund to the
General Fund.
  SECTION 123. ORS 351.718 is amended to read:
  351.718. (1) The members of the Higher Education Coordinating
Commission must be residents of this state who are well informed
on the principles of higher education.
  (2) A member of the State Board of Higher Education,
 { - Oregon Health and Science University - }   { + Portland
Metropolitan Universities + } Board of Directors or the governing
board of a community college district may not serve as a member
of the Higher Education Coordinating Commission.
  SECTION 124. ORS 351.735, as amended by section 1, chapter 104,
Oregon Laws 2012, is amended to read:
  351.735. (1) The Higher Education Coordinating Commission shall
advise the Oregon Education Investment Board on state goals and
associated achievement compacts for the state post-secondary
education system, including community colleges and public
universities listed in ORS 352.002, and for the Oregon Student
Access Commission.
  (2) Under the direction and control of the Oregon Education
Investment Board, the Higher Education Coordinating Commission
shall:
  (a) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to
helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (A) Increasing the educational attainment of the population;
  (B) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (C) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (D) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (b) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (c) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (A) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (B) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 in accordance with
criteria set by the State Board of Higher Education, with the
goal of encouraging tuition affordability for students;
  (C) Tuition rates set by each community college governing board
for community colleges in this state;
  (D) Recommended biennial appropriations for student financial
aid; and
  (E) Recommended biennial appropriations for any future
statewide higher education initiatives.
  (d) Each biennium, recommend to the Oregon Education Investment
Board a consolidated higher education budget request consistent
with the finance model, including appropriations for:
  (A) Ongoing operations of the Oregon Student Access Commission;
  (B) Ongoing operations for the Oregon University System;
  (C) Ongoing operations for community colleges;
  (D) Needed new facilities or programs; and
  (E) Capital improvements.
  (e) Coordinate with the Oregon Student Access Commission to
maximize the effectiveness of student financial assistance
programs, including the Oregon Opportunity Grant program under
ORS 348.260.
  (f) Approve and authorize degrees for the Oregon University
System.
  (g) Authorize degrees to be offered in this state in accordance
with ORS 348.594 to 348.615, and adopt any rules to implement
that authority.
  (3) In addition to the duties described in subsections (1) and
(2) of this section, the Higher Education Coordinating Commission
shall:
  (a) Develop and recommend policies to ensure or improve access
to higher education by underserved populations.
  (b) Recommend and encourage student success and completion
initiatives.
  (c) Develop and recommend policies to improve the coordination
of the provision of educational services, including:
  (A) Transfers and other movements throughout the higher
education system;
  (B) Accelerated college credit programs for high school
students;
  (C) Applied baccalaureate and other transfer degrees; and
  (D) Reciprocity agreements with other states.
  (d) Review research efforts among the public universities of
this state to improve economic development in this state.
  (e) Coordinate education initiatives with the State Workforce
Investment Board, the Department of Community Colleges and
Workforce Development, local workforce investment boards, the
  { - Oregon Health and Science University - }   { + Portland
Metropolitan Universities Board of Directors + } and independent
institutions of post-secondary education.
  SECTION 125. ORS 351.735, as amended by sections 1 and 3,
chapter 104, Oregon Laws 2012, is amended to read:
  351.735. (1) The Higher Education Coordinating Commission shall
advise the Oregon Education Investment Board on state goals and
associated achievement compacts for the state post-secondary
education system, including community colleges and public
universities listed in ORS 352.002, and for the Oregon Student
Access Commission.
  (2) Under the direction and control of the Oregon Education
Investment Board, the Higher Education Coordinating Commission
shall:
  (a) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to
helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (A) Increasing the educational attainment of the population;
  (B) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (C) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (D) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (b) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (c) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (A) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (B) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 in accordance with
criteria set by the State Board of Higher Education, with the
goal of encouraging tuition affordability for students;
  (C) Tuition rates set by each community college governing board
for community colleges in this state;
  (D) Recommended biennial appropriations for student financial
aid; and
  (E) Recommended biennial appropriations for any future
statewide higher education initiatives.
  (d) Each biennium, recommend to the Oregon Education Investment
Board a consolidated higher education budget request consistent
with the finance model, including appropriations for:
  (A) Ongoing operations of the Oregon Student Access Commission;
  (B) Ongoing operations for the Oregon University System;
  (C) Ongoing operations for community colleges;
  (D) Needed new facilities or programs; and
  (E) Capital improvements.
  (e) Coordinate with the Oregon Student Access Commission to
maximize the effectiveness of student financial assistance
programs, including the Oregon Opportunity Grant program under
ORS 348.260.
  (f) Approve and authorize degrees for the Oregon University
System.
  (g) Authorize degrees to be offered in this state in accordance
with ORS 348.594 to 348.615, and adopt any rules to implement
that authority.
  (3) In addition to the duties described in subsections (1) and
(2) of this section, the Higher Education Coordinating Commission
shall:
  (a) Develop and recommend policies to ensure or improve access
to higher education by underserved populations.
  (b) Recommend and encourage student success and completion
initiatives.
  (c) Develop and recommend policies to improve the coordination
of the provision of educational services, including:
  (A) Transfers and other movements throughout the higher
education system;
  (B) Accelerated college credit programs for high school
students;
  (C) Applied baccalaureate and other transfer degrees; and
  (D) Reciprocity agreements with other states.
  (d) Review research efforts among the public universities of
this state to improve economic development in this state.
  (e) Coordinate education initiatives with the State Workforce
Investment Board, the Department of Community Colleges and
Workforce Development, local workforce investment boards, the
  { - Oregon Health and Science University - }   { + Portland
Metropolitan Universities Board of Directors + } and independent
institutions of post-secondary education.
  (f) Oversee the licensing of career schools under ORS 345.010
to 345.450.
  SECTION 126. ORS 351.735, as amended by sections 1, 3 and 5,
chapter 104, Oregon Laws 2012, is amended to read:
  351.735. The Higher Education Coordinating Commission shall:

  (1) Develop state goals and associated achievement compacts for
the state post-secondary education system, including community
colleges and public universities listed in ORS 352.002, and for
the Oregon Student Access Commission.
  (2) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to
helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (a) Increasing the educational attainment of the population;
  (b) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (c) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (d) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (3) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (4) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (a) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (b) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 in accordance with
criteria set by the State Board of Higher Education, with the
goal of encouraging tuition affordability for students;
  (c) Tuition rates set by each community college governing board
for community colleges in this state;
  (d) Recommended biennial appropriations for student financial
aid; and
  (e) Recommended biennial appropriations for any future
statewide higher education initiatives.
  (5) Each biennium, recommend to the Governor and the
Legislative Assembly a consolidated higher education budget
request consistent with the finance model, including
appropriations for:
  (a) Ongoing operations of the Oregon Student Access Commission;
  (b) Ongoing operations for the Oregon University System;
  (c) Ongoing operations for community colleges;
  (d) Needed new facilities or programs; and
  (e) Capital improvements.
  (6) Coordinate with the Oregon Student Access Commission to
maximize the effectiveness of student financial assistance
programs, including the Oregon Opportunity Grant program under
ORS 348.260.
  (7) Approve and authorize degrees for the Oregon University
System.
  (8) Authorize degrees to be offered in this state in accordance
with ORS 348.594 to 348.615, and adopt any rules to implement
that authority.
  (9) Develop and recommend policies to ensure or improve access
to higher education by underserved populations.
  (10) Recommend and encourage student success and completion
initiatives.
  (11) Develop and recommend policies to improve the coordination
of the provision of educational services, including:
  (a) Transfers and other movements throughout the higher
education system;

  (b) Accelerated college credit programs for high school
students;
  (c) Applied baccalaureate and other transfer degrees; and
  (d) Reciprocity agreements with other states.
  (12) Review research efforts among the public universities of
this state to improve economic development in this state.
  (13) Coordinate education initiatives with the State Workforce
Investment Board, the Department of Community Colleges and
Workforce Development, local workforce investment boards, the
  { - Oregon Health and Science University - }   { + Portland
Metropolitan Universities Board of Directors + } and independent
institutions of post-secondary education.
  (14) Oversee the licensing of career schools under ORS 345.010
to 345.450.
  SECTION 127. ORS 351.810 is amended to read:
  351.810. The State Board of Higher Education,   { - the - }
 { +  Portland State University, + } Oregon Health and Science
University and the Oregon members of the Western Interstate
Commission for Higher Education are authorized to take any action
necessary to
  { - achieving the ends - }  { +  achieve the purposes + } of
the Western Regional Higher Education Compact.
  SECTION 128. ORS 351.820 is amended to read:
  351.820. (1) Prior to June 1 of each even-numbered year the
Oregon members of the Western Interstate Commission for Higher
Education shall determine the quotas of Oregon students for whom
various kinds of educational service should be purchased in
out-of-state institutions during the next biennium and shall
recommend to the State Board of Higher Education and the
 { - Oregon Health and Science University - }  { +  Portland
Metropolitan Universities + } Board of Directors the amount to be
included in its biennial budget to cover the cost of such
educational service for students enrolled in their respective
institutions.
  (2) The State Board of Higher Education and the   { - Oregon
Health and Science University - }  { +  Portland Metropolitan
Universities + } Board of Directors shall negotiate contracts
with the Western Interstate Commission for Higher Education for
educational service of the kind and amount indicated by the
quotas determined under subsection (1) of this section.
 { - The - }   { + Each + } board shall make payments required by
such contracts out of the money appropriated  { +  or
allocated + } to it for that purpose.
  (3) The State Board of Higher Education may also contract with
higher education institutions, or others, which are not members
of the Western Interstate Commission for Higher Education, to
furnish educational services to students who are residents of the
State of Oregon in those areas of higher education where the
educational institutions of the State of Oregon are unable to
provide the desired professional educational opportunities.
  SECTION 129. ORS 351.840 is amended to read:
  351.840. (1) The State Board of Higher Education and the
  { - Oregon Health and Science University - }  { +  Portland
Metropolitan Universities + } Board of Directors may contract
with the Western Interstate Commission for Higher Education to
furnish educational service in their respective Oregon public
universities to out-of-state students.
  (2) The State Board of Higher Education and the   { - Oregon
Health and Science University - }  { +  Portland Metropolitan
Universities + } Board of Directors shall determine the number of
out-of-state students that should be accepted into their
respective universities  { - , - }  and shall make final
decisions on admission of individual applicants.
  (3) { + (a) + } Payments made by the commission under such
contracts

  { - shall - }  { +  must + } be deposited in and credited to a
designated account in the Oregon University System Fund
established by ORS 351.506 for students enrolled in public
universities under the jurisdiction of the State Board of Higher
Education in the same manner that fees and tuition payments for
resident students are deposited and credited. The estimated
amount of the payments must be considered by the board in making
its biennial budgetary requests.
   { +  (b) Payments made by the commission under such contracts
must be deposited with Portland State University for students who
enroll in that university under the terms of the contracts.
  (c)  + }Payments made by the commission under such contracts
must be deposited with the Oregon Health and Science University
for students who enroll in that university under the terms of
 { - such - }  { +  the + } contracts.
  SECTION 130. ORS 351.870 is amended to read:
  351.870. (1) The Legislative Assembly finds and declares that
basic research is fundamental to the continuation and expansion
of applied research and is thus a necessary ingredient in
economic growth. The Legislative Assembly further finds that
basic research is itself an important activity   { - which - }
 { + that + } should be promoted.
  (2) It is the policy of this state that basic research is an
appropriate and necessary activity of our public universities.
Further, the State of Oregon has an obligation with other states
and the federal government to encourage and finance basic
research if the state and nation are to be active participants in
a future
  { - which - }   { + that + } will require ever increasing
levels of knowledge and understanding.
  (3) The Legislative Assembly acknowledges that a characteristic
of basic research is that no defined result can be guaranteed and
asserts that only through scholarly investigation can knowledge
be advanced to be later developed and applied.
  (4) The Legislative Assembly believes that moneys for basic
research should be regularly appropriated and that such moneys
should be used for support of qualified investigators and funding
of research projects.
  (5) The Legislative Assembly intends that in implementing the
policy on basic research or any other research policy, the State
Board of Higher Education { +  and the Portland Metropolitan
Universities Board of Directors + }, in keeping with the
principle of academic freedom, shall ensure open and free inquiry
and publication in all public universities under   { - its
jurisdiction - }  { +  their jurisdictions + }.
  SECTION 131. ORS 352.002 is amended to read:
  352.002. The Oregon University System established in ORS
351.011 consists of the following public universities under the
jurisdiction of the State Board of Higher Education:
  (1) University of Oregon.
  (2) Oregon State University.
    { - (3) Portland State University. - }
    { - (4) - }  { +  (3) + } Oregon Institute of Technology.
    { - (5) - }  { +  (4) + } Western Oregon University.
    { - (6) - }  { +  (5) + } Southern Oregon University.
    { - (7) - }  { +  (6) + } Eastern Oregon University.
  SECTION 132. ORS 352.063 is amended to read:
  352.063.   { - The Oregon University System - }  { +  Portland
State University + } may receive moneys from any public or
private source to support the Mark O. Hatfield School of
Government, the Center for Lakes and Reservoirs, the Graduate
School of Social Work or the Institute of Portland Metropolitan
Studies created under ORS 352.066, 352.068, 352.071 and 352.074.
Gifts and grants received to support the Mark O. Hatfield School
of Government, the Center for Lakes and Reservoirs, the Graduate
School of Social Work or the Institute of Portland Metropolitan
Studies shall be credited to the appropriate fund at Portland
State University   { - by the Oregon University System - } .
  SECTION 133. ORS 352.066 is amended to read:
  352.066. (1) Pursuant to ORS 351.870, there is created within
  { - the Oregon University System - }  { +  Portland State
University + } the Mark O. Hatfield School of Government.
 { - The Mark O. Hatfield School of Government shall be
administered by Portland State University. - } The president of
Portland State University shall appoint the director of the Mark
O. Hatfield School of Government.
  (2) The purposes of the Mark O. Hatfield School of Government
are:
  (a) To prepare students for careers in political service,
public administration and the administration of justice;
  (b) To perform the duties required of the school under ORS
36.179, 183.502 and 390.240; and
  (c) To assist the Criminal Justice Research and Policy
Institute in carrying out the duties under subsection (3) of this
section.
  (3) There is created within the Mark O. Hatfield School of
Government the Criminal Justice Research and Policy Institute.
The institute may assist the Legislative Assembly and state and
local governments in developing policies to reduce crime and
delinquency by:
  (a) Providing the Legislative Assembly with objective,
nonpartisan   { - analyses - }  { +  analysis + } of existing or
proposed state criminal justice policies,   { - which analyses
may not be inconsistent - }  { +  consistent + } with state or
federal law   { - or - }  { +  and + } the Oregon   { - or - }
 { +  and + } United States   { - Constitution - }  { +
Constitutions + };
  (b) Evaluating programs, including but not limited to programs
dealing with public safety professionalism, ethics in leadership
and childhood development, funded directly or indirectly by the
State of Oregon that are intended to reduce criminal and
delinquent behavior or to improve professionalism in public
safety careers;
  (c) Managing reviews and evaluations relating to major
long-term issues confronting the state involving criminal and
juvenile justice, public safety professionalism, ethics in
leadership and early childhood development programs;
  (d) Initiating, sponsoring, conducting and publishing research
on criminal and juvenile justice, public safety professionalism,
ethics in leadership and early childhood development that is peer
reviewed and directly useful to policymakers;
  (e) Organizing conferences on current state issues that bring
together policymakers, public agencies and leading academicians;
and
  (f) Seeking to strengthen the links among the Legislative
Assembly, state and local governments, the Oregon Criminal
Justice Commission, the Department of Public Safety Standards and
Training and the academic community in the interest of more
informed policymaking, the application of best practices and more
relevant academic research.
  (4) The Governor, the Chief Justice of the Supreme Court, the
President of the Senate, the Speaker of the House of
Representatives or the chairperson of a legislative committee
with responsibility over criminal or juvenile justice systems or
childhood development programs may request the assistance of the
Criminal Justice Research and Policy Institute in evaluating
criminal or juvenile justice programs developed for, but not
necessarily limited to, preventing delinquency, reducing crime
and improving professionalism in public safety careers.
  (5) Agencies, departments and officers of state and local
governments may assist the Criminal Justice Research and Policy

Institute in the performance of its functions and furnish
information, data and advice as requested by the institute.
  SECTION 134. ORS 352.068 is amended to read:
  352.068. (1) Pursuant to ORS 351.870, there is created within
  { - the Oregon University System - }  { +  Portland State
University + } the Center for Lakes and Reservoirs.   { - The
Center for Lakes and Reservoirs shall be administered by Portland
State University. - }
  (2) The purpose of the Center for Lakes and Reservoirs is to
assist state and federal agencies in researching and mitigating
nonindigenous, invasive aquatic species in this state and to work
with communities in developing effective management of lakes and
reservoirs.
  SECTION 135. ORS 352.071 is amended to read:
  352.071. (1) Pursuant to ORS 351.870, there is created within
  { - the Oregon University System - }   { + Portland State
University + } the Graduate School of Social Work.   { - The
Graduate School of Social Work shall be administered by Portland
State University. - }
  (2) The purpose of the Graduate School of Social Work is to
provide a center for specialized education and research in the
social services for the betterment of communities in the Portland
metropolitan area,   { - the - }   { + this + } state and the
Pacific Northwest.
  SECTION 136. ORS 352.074 is amended to read:
  352.074. (1) Pursuant to ORS 351.870, there is created within
  { - the Oregon University System - }  { +  Portland State
University + } the Institute of Portland Metropolitan Studies.
 { - The Institute of Portland Metropolitan Studies shall be
administered by Portland State University. - }
  (2) The purpose of the Institute of Portland Metropolitan
Studies is to build partnerships between Portland State
University's urban studies programs and the surrounding
communities of metropolitan Portland and to sponsor public
service research.
  SECTION 137. ORS 352.375 is amended to read:
  352.375. (1) A public university listed in ORS 352.002 { + ,
Portland State University + } or a community college shall charge
an enrolled student { + , + } who is not a resident of this state
and who is attending classes as an undergraduate on a
 { - public university or community college - }  campus
 { + located + } in this state { + , + } tuition and fees no
greater than the resident rate plus 50 percent of the difference
between the resident rate and the nonresident rate if the student
served in the Armed Forces of the United States and was relieved
or discharged from that service under honorable conditions.
  (2)   { - Every - }  { +  Each + } public university
 { - listed in ORS 352.002 - }  { + , Portland State
University + } and  { + each + } community college in this state
shall participate to the fullest extent allowed in the federal
educational assistance programs under the Supplemental
Appropriations Act of 2008 (P.L. 110-252) so as to reduce the
overall tuition rate for students eligible for tuition rate
reduction under subsection (1) of this section to the resident
tuition rate.
  (3) A person who served in the Armed Forces of the United
States and who receives federal tuition benefits in excess of the
tuition and fees the person is charged under subsection (1) of
this section at a public university   { - listed in ORS
352.002 - }  { + , Portland State University + } or a community
college where the person is enrolled shall pay tuition and fees
equal to the federal tuition benefits received.
  (4) Distance education and self-support courses as identified
by each public university   { - listed in ORS 352.002 - }  { + ,
Portland State University + } and  { + each + } community college
are exempt from the tuition reduction provisions of this section.
  (5) If a nonresident student otherwise eligible for tuition
benefits under this section is receiving federal vocational
rehabilitation education benefits, that student shall pay full
nonresident tuition and fees charged by a public university
  { - listed in ORS 352.002 - }  { + , Portland State
University + } or a community college.
  SECTION 138. ORS 408.095 is amended to read:
  408.095. (1) As used in this section, 'community college ' has
the meaning given that term in ORS 341.005.
  (2) There is created in the Department of Veterans' Affairs the
Campus Veterans' Service Officers Program.
  (3) The purpose of the program is to provide educational
outreach to veterans to help ensure that   { - they - }   { + the
veterans + } obtain maximum state and federal benefits.
  (4) The department shall appoint a sufficient number of campus
veterans' service officers to ensure that each Oregon community
college { + , Portland State University + } and each public
university in the Oregon University System, as described in ORS
352.002, is provided veterans' services.
  (5) Each community college { + , Portland State University + }
and  { +  each + } public university in the Oregon University
System shall provide office space that may be used for the
provision of veterans' services.
  (6) The department may adopt rules to implement the Campus
Veterans' Service Officers Program.
  SECTION 139. ORS 419B.005, as amended by section 60, chapter
37, Oregon Laws 2012, and section 1, chapter 92, Oregon Laws
2012, is amended to read:
  419B.005. As used in ORS 419B.005 to 419B.050, unless the
context requires otherwise:
  (1)(a) 'Abuse' means:
  (A) Any assault, as defined in ORS chapter 163, of a child and
any physical injury to a child which has been caused by other
than accidental means, including any injury which appears to be
at variance with the explanation given of the injury.
  (B) Any mental injury to a child, which shall include only
observable and substantial impairment of the child's mental or
psychological ability to function caused by cruelty to the child,
with due regard to the culture of the child.
  (C) Rape of a child, which includes but is not limited to rape,
sodomy, unlawful sexual penetration and incest, as those acts are
described in ORS chapter 163.
  (D) Sexual abuse, as described in ORS chapter 163.
  (E) Sexual exploitation, including but not limited to:
  (i) Contributing to the sexual delinquency of a minor, as
defined in ORS chapter 163, and any other conduct which allows,
employs, authorizes, permits, induces or encourages a child to
engage in the performing for people to observe or the
photographing, filming, tape recording or other exhibition which,
in whole or in part, depicts sexual conduct or contact, as
defined in ORS 167.002 or described in ORS 163.665 and 163.670,
sexual abuse involving a child or rape of a child, but not
including any conduct which is part of any investigation
conducted pursuant to ORS 419B.020 or which is designed to serve
educational or other legitimate purposes; and
  (ii) Allowing, permitting, encouraging or hiring a child to
engage in prostitution or to patronize a prostitute, as defined
in ORS chapter 167.
  (F) Negligent treatment or maltreatment of a child, including
but not limited to the failure to provide adequate food,
clothing, shelter or medical care that is likely to endanger the
health or welfare of the child.
  (G) Threatened harm to a child, which means subjecting a child
to a substantial risk of harm to the child's health or welfare.
  (H) Buying or selling a person under 18 years of age as
described in ORS 163.537.
  (I) Permitting a person under 18 years of age to enter or
remain in or upon premises where methamphetamines are being
manufactured.
  (J) Unlawful exposure to a controlled substance, as defined in
ORS 475.005, that subjects a child to a substantial risk of harm
to the child's health or safety.
  (b) 'Abuse' does not include reasonable discipline unless the
discipline results in one of the conditions described in
paragraph (a) of this subsection.
  (2) 'Child' means an unmarried person who is under 18 years of
age.
  (3) 'Higher education institution' means:
  (a) A community college as defined in ORS 341.005;
  (b) A public university listed in ORS 352.002;
   { +  (c) Portland State University; + }
    { - (c) - }   { + (d) + } The Oregon Health and Science
University; and
    { - (d) - }   { + (e) + } A private institution of higher
education located in Oregon.
  (4) 'Law enforcement agency' means:
  (a) A city or municipal police department.
  (b) A county sheriff's office.
  (c) The Oregon State Police.
  (d) A police department established by a university under ORS
352.383.
  (e) A county juvenile department.
  (5) 'Public or private official' means:
  (a) Physician, osteopathic physician, physician assistant,
naturopathic physician, podiatric physician and surgeon,
including any intern or resident.
  (b) Dentist.
  (c) School employee, including an employee of a higher
education institution.
  (d) Licensed practical nurse, registered nurse, nurse
practitioner, nurse's aide, home health aide or employee of an
in-home health service.
  (e) Employee of the Department of Human Services, Oregon Health
Authority, Early Learning Council, Youth Development Council,
Child Care Division of the Employment Department, the Oregon
Youth Authority, a county health department, a community mental
health program, a community developmental disabilities program, a
county juvenile department, a licensed child-caring agency or an
alcohol and drug treatment program.
  (f) Peace officer.
  (g) Psychologist.
  (h) Member of the clergy.
  (i) Regulated social worker.
  (j) Optometrist.
  (k) Chiropractor.
  (L) Certified provider of foster care, or an employee thereof.
  (m) Attorney.
  (n) Licensed professional counselor.
  (o) Licensed marriage and family therapist.
  (p) Firefighter or emergency medical services provider.
  (q) A court appointed special advocate, as defined in ORS
419A.004.
  (r) A child care provider registered or certified under ORS
657A.030 and 657A.250 to 657A.450.
  (s) Member of the Legislative Assembly.
  (t) Physical, speech or occupational therapist.
  (u) Audiologist.
  (v) Speech-language pathologist.
  (w) Employee of the Teacher Standards and Practices Commission
directly involved in investigations or discipline by the
commission.
  (x) Pharmacist.
  (y) An operator of a preschool recorded program under ORS
657A.255.
  (z) An operator of a school-age recorded program under ORS
657A.257.
  (aa) Employee of a private agency or organization facilitating
the provision of respite services, as defined in ORS 418.205, for
parents pursuant to a properly executed power of attorney under
ORS 109.056.
  (bb) Employee of a public or private organization providing
child-related services or activities:
  (A) Including but not limited to youth groups or centers, scout
groups or camps, summer or day camps, survival camps or groups,
centers or camps that are operated under the guidance,
supervision or auspices of religious, public or private
educational systems or community service organizations; and
  (B) Excluding community-based, nonprofit organizations whose
primary purpose is to provide confidential, direct services to
victims of domestic violence, sexual assault, stalking or human
trafficking.
  (cc) A coach, assistant coach or trainer of an amateur,
semiprofessional or professional athlete, if compensated and if
the athlete is a child.
  SECTION 140. ORS 431.690 is amended to read:
  431.690. (1) As used in this section, 'place of public
assembly' means a single building that has 50,000 square feet or
more of indoor floor space and where:
  (a)(A) The public congregates for purposes such as
deliberation, shopping, entertainment, amusement or awaiting
transportation; or
  (B) Business activities are conducted; and
  (b) At least 50 individuals congregate on a normal business
day.
  (2) Notwithstanding ORS 431.680 (3), the owner of a place of
public assembly shall have on the premises at least one automated
external defibrillator.
  (3) Notwithstanding subsection (2) of this section:
  (a) A community college { + , Portland State University + } or
a public university listed in ORS 352.002 shall have at least one
automated external defibrillator on the campus of the community
college or   { - public - }  university; and
  (b) If the campus of the community college or   { - public - }
university contains more than one place of public assembly, the
community college or   { - public - }  university shall ensure
that at least one automated external defibrillator is readily
available to each place of public assembly.
  (4) Subsection (2) of this section does not apply to a building
primarily used for worship or education associated with worship.
  SECTION 141. ORS 433.090 is amended to read:
  433.090. As used in ORS 433.090 to 433.102:
  (1) 'Authorized user' means a person or entity authorized to
provide information to or to receive information from an
immunization registry or tracking and recall system under ORS
433.090 to 433.102. 'Authorized user' includes, but is not
limited to:
  (a) The Oregon Health Authority and its agents;
  (b) Local health departments and their agents;
  (c) Licensed health care providers and their agents;
  (d) Health care institutions;
  (e) Insurance carriers;
  (f) State health plans as defined in ORS 192.556;
  (g) Parents, guardians or legal custodians of children under 18
years of age;
  (h) Clients 18 years of age or older;
  (i) Post-secondary education institutions;
  (j) Schools; and
  (k) Children's facilities.
  (2) 'Children's facility' has the meaning given that term in
ORS 433.235.
  (3) 'Client' means a person registered with any Oregon tracking
and recall system.
  (4) 'Immunization record' includes but is not limited to
records of the following:
  (a) Any immunization received;
  (b) Date immunization was received;
  (c) Complication or side effect associated with immunization;
  (d) Date and place of birth of a client;
  (e) Hospital where a client was born;
  (f) Client's name; and
  (g) Mother's name.
  (5) 'Immunization registry' means a listing of clients and
information relating to their immunization status, without regard
to whether the registry is maintained in this state or elsewhere.
  (6) 'Local health department' has the meaning given that term
in ORS 433.235.
  (7) 'Parent or guardian' has the meaning given the term '
parent' in ORS 433.235.
  (8) 'Post-secondary education institution' means:
  (a) A public university listed in ORS 352.002;
  (b) A community college operated under ORS chapter 341;
  (c) A school or division of Oregon Health and Science
University;   { - or - }
   { +  (d) Portland State University; or + }
    { - (d) - }  { +  (e) + } An Oregon-based, generally
accredited, private institution of higher education.
  (9) 'Provider' means a physician or a health care professional
who is acting within the scope of the physician's or
professional's licensure and is responsible for providing
immunization services or for coordinating immunization services
within a clinic, public health site, school or other immunization
site.
  (10) 'School' has the meaning given that term in ORS 433.235.
  (11) 'Tracking and recall record' means information needed to
send reminder cards to, place telephone calls to or personally
contact the client or the parent or guardian of a client for the
purposes of informing the client, parent or guardian that the
client is late in receiving recommended immunizations, hearing or
lead screenings, or other public health interventions, including
but not limited to the client's:
  (a) Name;
  (b) Address;
  (c) Telephone number;
  (d) Insurance carrier; and
  (e) Health care provider.
  (12) 'Tracking and recall system' means a system attached to an
immunization registry designed to contact clients listed in the
immunization registry for the purposes of assisting in the timely
completion of immunization series, hearing or lead screenings, or
other public health interventions designated by rule of the
authority.
  SECTION 142. ORS 461.535 is amended to read:
  461.535. The Intercollegiate Athletic Fund is created separate
and distinct from the General Fund. The fund shall consist of
revenues credited to the Sports Lottery Account under ORS 461.543
 { - (4) - }  { +  (5) + } and any other revenues available to
the fund.
  SECTION 143. ORS 461.543 is amended to read:
  461.543.  { + (1) As used in this section, 'revenue producing
sport' means a sport that produces net revenue over expenditures
during a calendar year or, if its season extends into two
calendar years, produces net revenue over expenditures during the
season. + }

    { - (1) - }   { + (2) + } Except as otherwise specified in
subsection   { - (5) - }  { +  (6) + } of this section, the
Sports Lottery Account is continuously appropriated to and shall
be used by the State Board of Higher Education  { + and the
Portland Metropolitan Universities Board of Directors + } to fund
sports programs at public universities listed in ORS 352.002 { +
and Portland State University + }. Seventy percent of the
revenues   { - in the fund - }  { +  received by each board + }
shall be used to fund nonrevenue producing sports and 30 percent
shall be used for revenue producing sports. Of the total amount
available in the fund, at least 50 percent shall be made
available for women's athletics.
    { - (2) - }   { + (3) + } The  { + State + } Board  { + of
Higher Education + } shall
  { - allocate - }  { +  receive 82 percent of the + } moneys in
the Sports Lottery Account { +  allocated under subsection (6)(a)
and (b) of this section and shall allocate these moneys + } among
the   { - public - }  universities  { +  under the board's
jurisdiction + }  { - , - }  giving due consideration to:
  (a) The athletic conference to which   { - the public - }
 { + each + } university belongs and the relative costs of
competing in that conference.
  (b) The level of effort being made by   { - the public - }
 { + each + } university to generate funds and support from
private sources.
    { - (3) As used in subsections (1) to (3) of this section, '
revenue producing sport' is a sport that produces net revenue
over expenditures during a calendar year or if its season extends
into two calendar years, produces net revenue over expenditures
during the season. - }
   { +  (4) The Portland Metropolitan Universities Board of
Directors shall receive 18 percent of the moneys in the Sports
Lottery Account allocated under subsection (6)(a) and (b) of this
section and distribute the moneys to Portland State
University. + }
    { - (4) - }  { +  (5) + } An amount equal to one percent of
the moneys transferred to the Administrative Services Economic
Development Fund from the State Lottery Fund shall be allocated
from the Administrative Services Economic Development Fund to the
Sports Lottery Account.
    { - (5) - }  { +  (6) + } The amounts received by the Sports
Lottery Account shall be allocated as follows:
  (a)   { - Eighty-eight percent for the purposes specified in
subsections (1) to (3) of this section - }  { +  88 percent for
sports + }, but not to exceed $8 million annually, adjusted
annually pursuant to the Consumer Price Index, as defined in ORS
327.006.
  (b)   { - Twelve - }  { +  12 + } percent for the purpose of
scholarships, to be distributed equally between scholarships
based on academic merit and scholarships based on need, as
determined by rule of the
  { - board - }  { +  State Board of Higher Education for
universities in the Oregon University System and by rule of the
Portland Metropolitan Universities Board of Directors for
Portland State University + }, but not to exceed $1,090,909
annually.
  (c) All additional   { - money - }  { +  moneys + } to the
Oregon Student Access Commission for the Oregon Opportunity Grant
program under ORS 348.260.
  SECTION 144. ORS 471.580 is amended to read:
  471.580. (1) As used in this section:
  (a) 'Alcohol equivalence' means the amount of ethanol that
would be expected to be present in a beverage based on the
standard drink measurement used by the Centers for Disease
Control and Prevention.
  (b) 'Education provider' means:
  (A) A community college, as defined in ORS 341.005, offering a
food or beverage career program approved by the State Board of
Education;
  (B) A career school, as defined in ORS 345.010, offering a food
or beverage career program approved by the Oregon Student
Assistance Commission or the State Board of Education;
  (C)   { - An institution of higher education - }   { + A public
university + } listed in ORS 352.002 offering a food or beverage
career program approved by the State Board of Higher Education;
 { - or - }
   { +  (D) Portland State University offering a food or beverage
career program approved by the Portland Metropolitan Universities
Board of Directors; or + }
    { - (D) - }   { + (E) + } A private and independent
institution of higher education, as defined in ORS 352.720,
offering a food or beverage career program that qualifies for
payment under ORS 352.740.
  (c) 'Food or beverage career program' means a course of study
designed to qualify a person for a career in the food service
industry or alcoholic beverage industry, including but not
limited to a course of study in culinary arts, viticulture,
winemaking, enology, brewing or restaurant management.
  (2) The charging or payment of tuition or a special fee for
enrollment in a class that is part of a food or beverage career
program or in a workshop or seminar concerning matters related to
food or beverage industry workforce training, offered by an
education provider, that includes the consumption of alcoholic
beverages for educational purposes, is not a sale or purchase of,
or other exchange of consideration for, alcoholic beverages.
  (3) Notwithstanding ORS 471.130, 471.406, 471.410 and 471.475,
an education provider may serve alcoholic beverages to a person
who is 18, 19 or 20 years of age and may allow the person to
possess and consume alcoholic beverages on a licensed or
unlicensed premises that the education provider uses for
educational purposes if:
  (a) The person is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The alcoholic beverages are served to, and possessed and
consumed by, the person for educational purposes as part of the
class curriculum or a workshop or seminar concerning food or
beverage workforce training;
  (c) The service, possession and consumption of the alcoholic
beverages are supervised by a faculty or staff member of the
education provider who is 21 years of age or older;
  (d) The person does not purchase the alcoholic beverages; and
  (e) The amount served to the person for consumption purposes
during any two-hour class, workshop or seminar period does not
exceed two ounces of alcohol equivalence.
  (4) Notwithstanding ORS 471.130 or 471.410, a person may serve
alcoholic beverages to another person who is 18, 19 or 20 years
of age on premises that an education provider uses for
educational purposes if:
  (a) The person served is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The alcoholic beverages are served to, and consumed by, the
person for educational purposes as part of the class curriculum
or, with the approval of the education provider, as part of a
workshop or seminar concerning food or beverage workforce
training;
  (c) The service and consumption of the alcoholic beverages are
supervised by a faculty or staff member of the education provider
who is 21 years of age or older;
  (d) The person served does not purchase the alcoholic
beverages; and
  (e) The amount served to the person for consumption purposes
during any two-hour class period does not exceed two ounces of
alcohol equivalence.
  (5) Notwithstanding ORS 471.130 or 471.410 or the prohibitions
in ORS 471.430, a person who is 18, 19 or 20 years of age may
possess and consume alcoholic beverages on a licensed or
unlicensed premises that an education provider uses for
educational purposes if:
  (a) The person is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The person possesses and consumes the alcoholic beverages
for educational purposes as part of the class curriculum or, with
the approval of the education provider, as part of a workshop or
seminar concerning food or beverage workforce training;
  (c) The person possesses and consumes the alcoholic beverages
under the supervision of a faculty or staff member of the
education provider who is 21 years of age or older;
  (d) The person does not purchase the alcoholic beverages; and
  (e) The amount consumed by the person during any two-hour
class, workshop or seminar period does not exceed two ounces of
alcohol equivalence.
  (6) Notwithstanding ORS 471.410, a person who exercises control
over private real property may allow a person who is 18, 19 or 20
years of age to remain on the property after the person who is
18, 19 or 20 years of age consumes an alcoholic beverage on the
property in accordance with this section.
  (7) Subsections (3) to (5) of this section do not affect the
ability of an education provider, a licensee or a permittee to
make alcoholic beverages available to a person 21 years of age or
older in accordance with this chapter or the ability of a person
21 years of age or older to possess or consume alcoholic
beverages in accordance with this chapter.
  SECTION 145. ORS 471.580, as amended by section 44, chapter
104, Oregon Laws 2012, is amended to read:
  471.580. (1) As used in this section:
  (a) 'Alcohol equivalence' means the amount of ethanol that
would be expected to be present in a beverage based on the
standard drink measurement used by the Centers for Disease
Control and Prevention.
  (b) 'Education provider' means:
  (A) A community college, as defined in ORS 341.005, offering a
food or beverage career program approved by the State Board of
Education;
  (B) A career school, as defined in ORS 345.010, offering a food
or beverage career program approved by the Oregon Student
Assistance Commission or the Higher Education Coordinating
Commission;
  (C)   { - An institution of higher education - }   { + A public
university + } listed in ORS 352.002 offering a food or beverage
career program approved by the State Board of Higher Education;
 { - or - }
   { +  (D) Portland State University, offering a food or
beverage career program approved by the Portland Metropolitan
Universities Board of Directors; or + }
    { - (D) - }   { + (E) + } A private and independent
institution of higher education, as defined in ORS 352.720,
offering a food or beverage career program that qualifies for
payment under ORS 352.740.
  (c) 'Food or beverage career program' means a course of study
designed to qualify a person for a career in the food service
industry or alcoholic beverage industry, including but not
limited to a course of study in culinary arts, viticulture,
winemaking, enology, brewing or restaurant management.
  (2) The charging or payment of tuition or a special fee for
enrollment in a class that is part of a food or beverage career
program or in a workshop or seminar concerning matters related to
food or beverage industry workforce training, offered by an
education provider, that includes the consumption of alcoholic
beverages for educational purposes, is not a sale or purchase of,
or other exchange of consideration for, alcoholic beverages.
  (3) Notwithstanding ORS 471.130, 471.406, 471.410 and 471.475,
an education provider may serve alcoholic beverages to a person
who is 18, 19 or 20 years of age and may allow the person to
possess and consume alcoholic beverages on a licensed or
unlicensed premises that the education provider uses for
educational purposes if:
  (a) The person is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The alcoholic beverages are served to, and possessed and
consumed by, the person for educational purposes as part of the
class curriculum or a workshop or seminar concerning food or
beverage workforce training;
  (c) The service, possession and consumption of the alcoholic
beverages are supervised by a faculty or staff member of the
education provider who is 21 years of age or older;
  (d) The person does not purchase the alcoholic beverages; and
  (e) The amount served to the person for consumption purposes
during any two-hour class, workshop or seminar period does not
exceed two ounces of alcohol equivalence.
  (4) Notwithstanding ORS 471.130 or 471.410, a person may serve
alcoholic beverages to another person who is 18, 19 or 20 years
of age on premises that an education provider uses for
educational purposes if:
  (a) The person served is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The alcoholic beverages are served to, and consumed by, the
person for educational purposes as part of the class curriculum
or, with the approval of the education provider, as part of a
workshop or seminar concerning food or beverage workforce
training;
  (c) The service and consumption of the alcoholic beverages are
supervised by a faculty or staff member of the education provider
who is 21 years of age or older;
  (d) The person served does not purchase the alcoholic
beverages; and
  (e) The amount served to the person for consumption purposes
during any two-hour class period does not exceed two ounces of
alcohol equivalence.
  (5) Notwithstanding ORS 471.130 or 471.410 or the prohibitions
in ORS 471.430, a person who is 18, 19 or 20 years of age may
possess and consume alcoholic beverages on a licensed or
unlicensed premises that an education provider uses for
educational purposes if:
  (a) The person is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The person possesses and consumes the alcoholic beverages
for educational purposes as part of the class curriculum or, with
the approval of the education provider, as part of a workshop or
seminar concerning food or beverage workforce training;
  (c) The person possesses and consumes the alcoholic beverages
under the supervision of a faculty or staff member of the
education provider who is 21 years of age or older;
  (d) The person does not purchase the alcoholic beverages; and
  (e) The amount consumed by the person during any two-hour
class, workshop or seminar period does not exceed two ounces of
alcohol equivalence.
  (6) Notwithstanding ORS 471.410, a person who exercises control
over private real property may allow a person who is 18, 19 or 20
years of age to remain on the property after the person who is
18, 19 or 20 years of age consumes an alcoholic beverage on the
property in accordance with this section.
  (7) Subsections (3) to (5) of this section do not affect the
ability of an education provider, a licensee or a permittee to
make alcoholic beverages available to a person 21 years of age or
older in accordance with this chapter or the ability of a person
21 years of age or older to possess or consume alcoholic
beverages in accordance with this chapter.
  SECTION 146. ORS 541.932 is amended to read:
  541.932. (1)(a) The following entities may submit a request for
funding for, or for advice and assistance in developing, a
project under ORS 541.890 to 541.969:
  (A) A person;
  (B) An Indian tribe;
  (C) A watershed council;
  (D) A soil and water conservation district;
  (E) A community college;
  (F) A public university listed in ORS 352.002;
   { +  (G) Portland State University; + }
    { - (G) - }   { + (H) + } An independent not-for-profit
institution of higher education; or
    { - (H) - }   { + (I) + } A political subdivision of this
state that is not a state agency.
  (b) A state agency or federal agency may apply for funding
under this section only as a coapplicant with an entity described
in paragraph (a) of this subsection.
  (2) The request under subsection (1) of this section shall be
filed in the manner, be in the form and contain the information
required by the Oregon Watershed Enhancement Board, regardless of
the anticipated funding source for the project.
  (3) The board may establish a grant program through soil and
water conservation districts organized under ORS 568.210 to
568.808 and 568.900 to 568.933 that provides funds for local
implementation of watershed enhancement, education and monitoring
efforts.
  (4) The board may fund implementation of action plans based on
a watershed assessment that addresses water quality and aquatic
resources of the watershed.
  (5) A project may use mechanical, vegetative or structural
methods including, but not limited to, management techniques,
erosion control, streambank stabilization, forest, range or crop
land treatment, site specific in-stream structures, acquisitions
or leases of land or water rights from a willing owner, watershed
assessments, landowner incentives and action plan development,
implementation and monitoring.
  (6) The actions of a soil and water conservation district
carried out pursuant to a grant program established by the board
under subsection (3) of this section shall not be subject to
review and approval by the Natural Resources Division under ORS
561.400.
  (7) If a project or a portion of a project is not subject to
the funding criteria described in ORS 541.958 and applies to
receive funding from the board, the board may approve the project
or portion of a project for funding only if the project or
portion of a project:
  (a) Is based on sound principles of native fish or wildlife
habitat conservation or watershed management;
  (b) Uses methods most adapted to the project locale;
  (c) Meets the criteria established by the board under ORS
541.906; and
  (d) Contributes to either:
  (A) The improved health of a stream, lake or reservoir and
toward the achievement of standards that satisfy the requirements
of the Federal Water Pollution Control Act (P.L. 92-500), as
amended; or
  (B) The conservation or restoration of habitat for, or of
watershed or ecosystem function for, native fish or wildlife.
  (8) The Oregon Watershed Enhancement Board may fund a project
for the restoration of a riparian area or associated upland that
is carried out in conjunction with a storage structure. However,
the board shall not approve funding for any proposed project that
consists solely of construction of a storage structure for
out-of-stream use.
  (9) The Oregon Watershed Enhancement Board may fund projects
involving the acquisition of lands and waters, or interests
therein from willing sellers, for the purpose of maintaining or
restoring watersheds and habitat for native fish or wildlife.
Interests in these lands and waters may be held by local, state
and federal agencies, tribes, not-for-profit land conservation
organizations and trusts, public universities listed in ORS
352.002, independent not-for-profit institutions of higher
education or political subdivisions of this state, as long as the
entity continues to use the land or water for the purposes
specified under section 4b, Article XV of the Oregon
Constitution.
  (10) If the Oregon Watershed Enhancement Board approves funding
for a project under this section, the board may not disburse
funds to the applicant for any part of the project that requires
the applicant to obtain a permit or license from a local, state
or federal agency or governing body until the applicant presents
evidence that the agency has granted the permit or license.
  SECTION 147. ORS 660.315 is amended to read:
  660.315. (1) The Governor shall designate regional workforce
committees to advise the Governor, local workforce investment
boards that represent federally recognized workforce areas
containing multiple regions, and county elected officials on
regional and local needs for workforce development. The
committees shall also prepare plans for achieving regional goals
and coordinate the provision of services within regions. The
committees shall have private and public sector members. However,
a majority of the members of each committee shall represent the
private sector and include business and labor representatives.
The chairperson of each committee shall be a private sector
member and be elected by the committee.
  (2) The private sector committee members shall play a critical
role in workforce development, including but not limited to:
  (a) Identifying current and future workforce needs;
  (b) Providing feedback on public sector programs;
  (c) Assisting public agencies in changing programs to be more
effective in meeting private sector needs; and
  (d) Being a partner in addressing workforce needs.
  (3) Private sector members of a committee created under this
section shall be appointed by county commissioners and, in the
region that includes the City of Portland, the Mayor of Portland.
The members of the committee shall reflect the broadest feasible
representation from the groups described in ORS 660.312 (4)(a) to
(h).
  (4) The public sector representatives on the committee are
representatives who receive resources and deliver education and
workforce programs within the labor market area. Public sector
members shall include the broadest feasible representation from,
but not be limited to, the following:
  (a) The Department of Human Services;
  (b) School districts, education service districts, community
colleges, public universities listed in ORS 352.002 { + ,
Portland State University + } and Oregon Health and Science
University;
  (c) The Oregon Business Development Department and local
economic development entities;
  (d) The Employment Department;
  (e) The federal Act programs; and
  (f) Other public sector partners.
  (5) A region may recommend to the Governor an alternate
structure for its regional committee, based on regional
determination and mutually agreed to by the current public and
private sector members of the regional workforce committee and
the chief elected officials. The alternate structure must retain
a private sector chairperson, appointments of the private sector
members as provided in subsection (3) of this section, and
substantive public and private sector and other stakeholder
participation through formalized methods, such as standing
committees.
  (6) A regional workforce committee shall develop and implement
a strategic regional workforce plan that responds to the current
and future workforce needs of the regional labor market.
  (7) The strategic regional workforce plan shall:
  (a) Consider the supply and demand outlook for the region;
  (b) Identify and prioritize initiatives and resources, both
public and private, to meet the regional workforce needs;
  (c) Articulate and include the coordination of both public and
private resources in addressing the workforce needs and goals;
and
  (d) Ensure the most appropriate use of resource investments.
  (8) The regional workforce committee shall create or enhance
the workforce program delivery system to meet the strategic
priorities of the region and any strategic priorities of a
federally recognized workforce area that includes that region.
  (9) Within each region, or within overlapping regions, regional
workforce committees, local workforce investment boards and
regional investment boards shall coordinate their planning
efforts to ensure that the strategic efforts and resource
allocation of economic and workforce development of an area are
consistent. Regional workforce committees and regional investment
boards will extend opportunities to other entities engaged in
economic and workforce development programs and services to
participate in their joint or integrated strategic planning.
  (10)(a) A local workforce investment board that represents a
multiregional workforce area shall hold regional workforce
committees in the area accountable for any policy and operational
responsibilities under 2832(d) of the federal Act that is
delegated to the committees in accordance with state policy and
local workforce investment board policy.
  (b) A regional workforce committee within a multiregional
workforce area is accountable to the local workforce investment
board for any policy and operational responsibilities carried out
under the federal Act on behalf of the board.
  (c) As it relates to regional responsibilities under this
section, a regional workforce committee may, through a vote of
the committee, determine the methodology for delegating the
responsibilities of the regional workforce committee to a local
workforce investment board representing the multiregional
workforce area.
  SECTION 148. ORS 679.020 is amended to read:
  679.020. (1) A person may not practice dentistry without a
license.
  (2) Only a person licensed as a dentist by the Oregon Board of
Dentistry may own, operate, conduct or maintain a dental
practice, office or clinic in this state.
  (3) The restrictions of subsection (2) of this section, as they
relate to owning and operating a dental office or clinic, do not
apply to a dental office or clinic owned or operated by any of
the following:
  (a) A labor organization as defined in ORS 243.650 and 663.005
(6), or to any nonprofit organization formed by or on behalf of
such labor organization for the purpose of providing dental
services. Such labor organization must have had an active
existence for at least three years, have a constitution and
bylaws, and be maintained in good faith for purposes other than
providing dental services.
  (b) The School of Dentistry of the Oregon Health and Science
University.
  (c) Public universities listed in ORS 352.002 { +  and Portland
State University + }.
  (d) Local governments.
  (e) Institutions or programs accredited by the Commission on
Dental Accreditation of the American Dental Association to
provide education and training.
  (f) Nonprofit corporations organized under Oregon law to
provide dental services to rural areas and medically underserved
populations of migrant, rural community or homeless individuals
under 42 U.S.C. 254b or 254c or health centers qualified under 42
U.S.C. 1396d(l)(2)(B) operating in compliance with other
applicable state and federal law.
  (g) Nonprofit charitable corporations as described in section
501(c)(3) of the Internal Revenue Code and determined by the
Oregon Board of Dentistry as providing dental services by
volunteer licensed dentists to populations with limited access to
dental care at no charge or a substantially reduced charge.
  (4) For the purpose of owning or operating a dental office or
clinic, an entity described in subsection (3) of this section
must:
  (a) Name an actively licensed dentist as its dental director,
who shall be subject to the provisions of ORS 679.140 in the
capacity as dental director. The dental director, or an actively
licensed dentist designated by the director, shall have
responsibility for the clinical practice of dentistry, which
includes, but is not limited to:
  (A) Diagnosis of conditions within the human oral cavity and
its adjacent tissues and structures.
  (B) Prescribing drugs that are administered to patients in the
practice of dentistry.
  (C) The treatment plan of any dental patient.
  (D) Overall quality of patient care that is rendered or
performed in the practice of dentistry.
  (E) Supervision of dental hygienists, dental assistants or
other personnel involved in direct patient care and the
authorization for procedures performed by them in accordance with
the standards of supervision established by statute or by the
rules of the board.
  (F) Other specific services within the scope of clinical dental
practice.
  (G) Retention of patient dental records as required by statute
or by rule of the board.
  (H) Ensuring that each patient receiving services from the
dental office or clinic has a dentist of record.
  (b) Maintain current records of the names of licensed dentists
who supervise the clinical activities of dental hygienists,
dental assistants or other personnel involved in direct patient
care utilized by the entity. The records must be available to the
board upon written request.
  (5) Subsections (1) and (2) of this section do not apply to an
expanded practice dental hygienist who renders services
authorized by a permit issued by the board pursuant to ORS
680.200.
  (6) Nothing in this chapter precludes a person or entity not
licensed by the board from:
  (a) Ownership or leasehold of any tangible or intangible assets
used in a dental office or clinic. These assets include real
property, furnishings, equipment and inventory but do not include
dental records of patients related to clinical care.
  (b) Employing or contracting for the services of personnel
other than licensed dentists.

  (c) Management of the business aspects of a dental office or
clinic that do not include the clinical practice of dentistry.
  (7) If all of the ownership interests of a dentist or dentists
in a dental office or clinic are held by an administrator,
executor, personal representative, guardian, conservator or
receiver of the estate of a former shareholder, member or
partner, the administrator, executor, personal representative,
guardian, conservator or receiver may retain the ownership
interest for a period of 12 months following the creation of the
ownership interest. The board shall extend the ownership period
for an additional 12 months upon 30 days' notice and may grant
additional extensions upon reasonable request.
  SECTION 149. ORS 696.182 is amended to read:
  696.182. (1) The Real Estate Agency, with advice from real
estate professionals and educators, shall prescribe rules for
certifying real estate continuing education providers.
  (2) The agency shall include in the rules that an applicant for
certification under this section must be:
  (a) A main or branch office, with a registered business name as
provided under ORS 696.026, of a licensed real estate property
manager or principal real estate broker;
  (b) A licensed title or escrow company conducting business in
this state;
  (c) A real estate trade association or a trade association in a
related field;
  (d) A real estate multiple listing service;
  (e) An attorney admitted to practice in this state;
  (f) A private career school licensed by the Department of
Education and approved by the agency to provide the basic real
estate broker's or property manager's educational courses
required under ORS 696.022;
  (g) An accredited community college,   { - an accredited - }
 { +  a + } public university listed in ORS 352.002 { + ,
Portland State University + } or a private and independent
institution of higher education as defined in ORS 352.720;
  (h) A distance learning provider as provided by rule of the
agency; or
  (i) Another provider approved by the Real Estate Board.
  (3) The Real Estate Agency may provide continuing education
without being certified under this section.
  (4) The agency, in consultation with real estate professionals
and educators, shall provide by rule:
  (a) A broad list of course topics that are eligible for
continuing education credit required by ORS 696.174; and
  (b) Learning objectives for each course topic.
  (5) The list of course topics developed by the agency under
subsection (4) of this section must allow for changes in the real
estate profession.
  (6) The minimum length of each course is one hour. A continuing
education provider or course instructor may allow a break of no
more than 10 minutes for each hour of instruction.
  SECTION 150. ORS 696.182, as amended by section 46, chapter
104, Oregon Laws 2012, is amended to read:
  696.182. (1) The Real Estate Agency, with advice from real
estate professionals and educators, shall prescribe rules for
certifying real estate continuing education providers.
  (2) The agency shall include in the rules that an applicant for
certification under this section must be:
  (a) A main or branch office, with a registered business name as
provided under ORS 696.026, of a licensed real estate property
manager or principal real estate broker;
  (b) A licensed title or escrow company conducting business in
this state;
  (c) A real estate trade association or a trade association in a
related field;
  (d) A real estate multiple listing service;
  (e) An attorney admitted to practice in this state;
  (f) A private career school licensed by the Higher Education
Coordinating Commission and approved by the agency to provide the
basic real estate broker's or property manager's educational
courses required under ORS 696.022;
  (g) An accredited community college,   { - an accredited - }
 { +  a + } public university listed in ORS 352.002 { + ,
Portland State University + } or a private and independent
institution of higher education as defined in ORS 352.720;
  (h) A distance learning provider as provided by rule of the
agency; or
  (i) Another provider approved by the Real Estate Board.
  (3) The Real Estate Agency may provide continuing education
without being certified under this section.
  (4) The agency, in consultation with real estate professionals
and educators, shall provide by rule:
  (a) A broad list of course topics that are eligible for
continuing education credit required by ORS 696.174; and
  (b) Learning objectives for each course topic.
  (5) The list of course topics developed by the agency under
subsection (4) of this section must allow for changes in the real
estate profession.
  (6) The minimum length of each course is one hour. A continuing
education provider or course instructor may allow a break of no
more than 10 minutes for each hour of instruction.
  SECTION 151. ORS 759.445 is amended to read:
  759.445. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Connecting
Oregon Communities Fund. Moneys in the fund shall consist of
amounts deposited in the fund under ORS 759.405 and any other
moneys deposited by a telecommunications carrier that elects to
be subject to ORS 759.405 and 759.410, including amounts
deposited pursuant to a performance assurance plan implemented by
a telecommunications carrier in connection with an application
under 47 U.S.C. 271, as in effect on January 1, 2002. Interest
earned on moneys in the fund shall accrue to the fund. Moneys in
the fund may be invested as provided in ORS 293.701 to 293.820.
Moneys in the fund shall be used to provide access to advanced
telecommunications technology in elementary schools and high
schools, colleges and universities, community colleges, public
television corporations, rural health care providers, public
libraries and other eligible persons.
  (2) Two dedicated accounts shall be established within the
Connecting Oregon Communities Fund for purposes of supporting
education and public access to advanced telecommunications
services. The first $25 million of the moneys deposited in the
Connecting Oregon Communities Fund in both 2000 and 2001 shall be
appropriated to the School Technology Account established under
subsection (3) of this section. Except as provided in subsection
(8) of this section, any additional moneys available in the fund
shall be appropriated to the Public Access Account established
under subsection (4) of this section.
  (3) There is established the School Technology Account within
the Connecting Oregon Communities Fund. The purpose of the School
Technology Account is to improve access to advanced
telecommunications services for students attending public school
in kindergarten through grade 12. Moneys in the account shall be
expended as provided in section 34, chapter 1093, Oregon Laws
1999.
  (4)(a) There is established the Public Access Account within
the Connecting Oregon Communities Fund. The purpose of the Public
Access Account is to improve access to advanced
telecommunications services for community colleges, universities,
public libraries and rural health care providers.
  (b) If funding has not been provided from other sources, the
first $3 million available in the Public Access Account shall be
transferred to the Oregon University System for the purpose of
funding the Oregon Wide Area Network project to provide and
expand Internet access for the Oregon University System. The
Oregon University System shall complete an audit of bandwidth
utilization and report to the Joint Legislative Committee on
Information Management and Technology during the Seventy-first
Legislative Assembly in the manner provided in ORS 192.245.
  (c) Following the transfer of funds described in paragraph (b)
of this subsection, the next $1 million available in the Public
Access Account shall be transferred to the Oregon University
System for Oregon State University for the purpose of providing
virtual access to persons with disabilities.
  (d) Following the transfer of funds as described in paragraphs
(b) and (c) of this subsection, the next $2 million available in
the Public Access Account shall be transferred to the Department
of Community Colleges and Workforce Development for distribution
to community colleges for the purpose of developing connectivity
and distance education programs.
  (e) Following the transfer of funds described in paragraphs (b)
to (d) of this subsection, the next $4 million available in the
Public Access Account shall be transferred to the Oregon
University System for video transport and network management
services for the Oregon University System.
  (f) Following the transfer of funds described in paragraphs (b)
to (e) of this subsection, the next $5.5 million available in the
Public Access Account shall be transferred to the Oregon Public
Broadcasting Corporation for the purpose of digitizing the state
television network, using the Oregon Enterprise Network when
possible.
  (g) Following the transfer of funds described in paragraphs (b)
to (f) of this subsection, the next $500,000 available in the
Public Access Account shall be transferred to the Southern Oregon
Public Television Corporation for the purpose of digitizing the
state television network, using the Oregon Enterprise Network
when possible.
  (h) Following the transfer of funds described in paragraphs (b)
to (g) of this subsection, a public university listed in ORS
352.002 { + , Portland State University + } or   { - the - }
Oregon Health and Science University may apply for one-time
matching funds up to $1 million from the Public Access Account to
endow a telecommunications chair for the purpose of increasing
research and development of advanced telecommunications services
applications. Only one chair may be endowed under this paragraph.
  (5)(a) The Oregon Business Development Commission shall approve
expenditure of any remaining moneys in the Public Access Account
consistent with this section and ORS 759.430.
  (b) Community colleges, public universities listed in ORS
352.002,  { + Portland State University, + } public libraries,
public television corporations and rural health care providers
may apply to the Oregon Business Development Commission for
funding from the Public Access Account under this subsection.
  (c) Funds received from the account shall be used for the
purchase of advanced telecommunications services, equipment or
recurring costs of telecommunications connectivity. Priority
shall be given to collaborative projects that improve access to
advanced telecommunications services.
  (d) Funds available in the Public Access Account under this
subsection are continuously appropriated to the Oregon Business
Development Department for the purposes described in this
subsection.
  (6) Public libraries and rural health care providers must apply
for federal universal service support in order to be eligible for
a grant from the Public Access Account.
  (7) The video transport and network management services
purchased with funds made available under this section shall be

purchased through the Oregon Department of Administrative
Services.
  (8) Any moneys deposited in the Connecting Oregon Communities
Fund under subsection (1) of this section pursuant to a
performance assurance plan implemented by a telecommunications
carrier in connection with an application under 47 U.S.C. 271, as
in effect on January 1, 2002, shall be placed in the School
Technology Account to be expended as provided in section 34,
chapter 1093, Oregon Laws 1999.
  SECTION 152.  { + The duties, functions and powers of the State
Board of Higher Education relating to Portland State University
are imposed upon, transferred to and vested in the Portland
Metropolitan Universities Board of Directors. + }
  SECTION 153.  { + (1) The Chancellor of the Oregon University
System shall:
  (a) Deliver to the Portland Metropolitan Universities Board of
Directors all records and property within the jurisdiction of the
chancellor that relate to the duties, functions and powers
relating to Portland State University; and
  (b) Transfer to the Portland Metropolitan Universities Board of
Directors those employees engaged primarily in the exercise of
the duties, functions and powers relating to Portland State
University.
  (2) The president of Portland State University shall take
possession of the records and property, and shall take charge of
the employees and employ them in the exercise of the duties,
functions and powers transferred by section 152 of this 2013 Act,
without reduction of compensation but subject to change or
termination of employment or compensation as provided by law.
  (3) The Governor shall resolve any dispute between the State
Board of Higher Education and the Portland Metropolitan
Universities Board of Directors relating to transfers of records,
property and employees under this section, and the Governor's
decision is final. + }
  SECTION 154.  { + The transfer of duties, functions and powers
to the Portland Metropolitan Universities Board of Directors by
section 152 of this 2013 Act does not affect any action,
proceeding or prosecution involving or with respect to such
duties, functions and powers begun before and pending at the time
of the transfer, except that the Portland Metropolitan
Universities Board of Directors is substituted for the State
Board of Higher Education in the action, proceeding or
prosecution. + }
  SECTION 155.  { + (1) The transfer of the duties, functions and
powers relating to Portland State University from the State Board
of Higher Education to the Portland Metropolitan Universities
Board of Directors may not be construed in any way to impair the
obligations or agreements of the State of Oregon or the State
Board of Higher Education with respect to bonds, certificates of
participation, financing agreements or other agreements for the
borrowing of money issued prior to the effective date of this
2013 Act by the State of Oregon on behalf of the State Board of
Higher Education for equipment or projects for Portland State
University.
  (2) The Portland Metropolitan Universities Board of Directors
and the State Board of Higher Education shall take all actions
necessary to ensure full compliance with all indentures,
resolutions, declarations, agreements and other documents issued
with respect to the bonds, certificates of participation,
financing agreements or other agreements for the borrowing of
money issued prior to the effective date of this 2013 Act by the
State of Oregon on behalf of the State Board of Higher Education
for equipment or projects for Portland State University.
  (3) The State Board of Higher Education and the Portland
Metropolitan Universities Board of Directors shall establish, in
a written agreement that is subject to the approval of the State
Treasurer, the responsibility of the Portland Metropolitan
Universities Board of Directors for the payment to the State
Board of Higher Education of moneys sufficient to pay when due
all principal, interest and any other charges on bonds,
certificates of participation, financing agreements or other
agreements for the borrowing of money issued prior to July 15,
2015, by the State of Oregon on behalf of the State Board of
Higher Education for equipment or projects for Portland State
University.
  (4) Holders of obligations issued by Portland State University
on or after the effective date of this 2013 Act may be paid at an
equal pace with the obligations issued by the State of Oregon on
behalf of the State Board of Higher Education for equipment or
projects for the university prior to July 1, 2015, from the
rents, revenues, receipts, appropriations or other income of the
university, but only to the extent that:
  (a) Such holders have no rights, liens or other interests with
respect to such rents, revenues, receipts, appropriations or
other income of the university that are senior or superior to the
rights granted to the holders of obligations issued prior to the
July 1, 2015, by the State of Oregon on behalf of the State Board
of Higher Education for equipment or projects for the university;
and
  (b) The State Board of Higher Education, the Oregon Department
of Administrative Services or the State of Oregon, acting for the
benefit of such holders of obligations, is granted a lien or
other security interest in the rents, revenues, receipts,
appropriations or other income of the university that is not
junior to and is at least on an equal footing with any lien or
other security interest granted to the holders of obligations
issued by the university.
  (5) Any expenses, including legal expenses, judgments,
liabilities and federal arbitrage and rebate penalties arising
from the actions of Portland State University or the State Board
of Higher Education, if incurred with respect to bonds,
certificates of participation, financing agreements or other
agreements for the borrowing of money issued prior to the
effective date of this 2013 Act by the State of Oregon on behalf
of the State Board of Higher Education for equipment or projects
for the university, shall be paid when due by the Portland
Metropolitan Universities Board of Directors, subject to that
board's right to reasonably contest such expenses, judgments,
liabilities or penalties. The Portland Metropolitan Universities
Board of Directors shall assist the Controller of the Oregon
University System in making any necessary calculations and filing
any necessary reports related to arbitrage and rebate on such
indebtedness.
  (6) Any amounts deposited with the State Treasurer, the
Controller of the Oregon University System or the Oregon
Department of Administrative Services or its designated agents in
any debt service in reserve accounts for the debt service
associated with any bonds, certificates of participation,
financing agreements or other agreements for the borrowing of
money issued prior to the effective date of this 2013 Act by the
State of Oregon on behalf of the State Board of Higher Education
for equipment or projects for Portland State University shall
remain with the State Treasurer, the Controller of the Oregon
University System or the Oregon Department of Administrative
Services or its designated agents until such time as the bonds,
certificates of participation, financing agreements or other
agreements for the borrowing of money for which such reserve
accounts have been established have been retired or defeased.
Portland State University shall be credited with the investment
earnings on such reserve accounts. + }
  SECTION 156.  { + (1) Nothing in sections 152 to 158 of this
2013 Act relieves a person of a liability, duty or obligation
accruing under or with respect to the duties, functions and
powers transferred by section 152 of this 2013 Act. The Portland
Metropolitan Universities Board of Directors may undertake the
collection or enforcement of any such liability, duty or
obligation.
  (2) The rights and obligations of the State Board of Higher
Education legally incurred under contracts, leases and business
transactions executed, entered into or begun before July 1, 2015,
accruing under or with respect to the duties, functions and
powers transferred by section 152 of this 2013 Act are
transferred to the Portland Metropolitan Universities Board of
Directors. For the purpose of succession to these rights and
obligations, the Portland Metropolitan Universities Board of
Directors is a continuation of the State Board of Higher
Education and not a new authority. + }
  SECTION 157.  { + Notwithstanding the transfer of duties,
functions and powers by section 152 of this 2013 Act, the rules
of the State Board of Higher Education with respect to such
duties, functions or powers that are in effect on July 1, 2015,
continue in effect until superseded or repealed by rules of the
Portland Metropolitan Universities Board of Directors. References
in such rules of the State Board of Higher Education to Portland
State University or an officer or employee of Portland State
University are considered to be references to Portland State
University, as established as a public corporation under the
amendments to ORS 353.020 by section 1 of this 2013 Act, or to an
officer or employee of Portland State University. + }
  SECTION 158.  { + Whenever, in any uncodified law or resolution
of the Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, in the context
of the duties, functions and powers transferred by section 152 of
this 2013 Act, reference is made to the State Board of Higher
Education, or an officer or employee of the State Board of Higher
Education whose duties, functions or powers are transferred by
section 152 of this 2013 Act, the reference is considered to be a
reference to the Portland Metropolitan Universities Board of
Directors or an officer or employee of the Portland Metropolitan
Universities Board of Directors who by section 152 of this 2013
Act is charged with carrying out such duties, functions and
powers. + }
  SECTION 159.  { + (1) The amendments to ORS 343.040 by section
7 of this 2013 Act are intended to change the name of the Oregon
Health and Science University Board of Directors to the Portland
Metropolitan Universities Board of Directors.
  (2) Whenever, in any uncodified law or resolution of the
Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, reference is
made to the Oregon Health and Science University Board of
Directors or an officer or employee of the Oregon Health and
Science University Board of Directors, the reference is
considered to be a reference to the Portland Metropolitan
Universities Board of Directors or an officer or employee of the
Portland Metropolitan Universities Board of Directors.
  (3) References in the rules of the Oregon Health and Science
University Board of Directors to the Oregon Health and Science
University Board of Directors or an officer or employee of the
Oregon Health and Science University Board of Directors are
considered to be references to the Portland Metropolitan
Universities Board of Directors or an officer or employee of the
Portland Metropolitan Universities Board of Directors. + }
  SECTION 160.  { + This 2013 Act becomes operative on July 1,
2015. + }
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